KOLKATA: The Calcutta High Court on Friday appointed four administrators to oversee the estate of the late Priyamvada Devi Birla.

For the first time since the outbreak of a legal war between the Birlas and their once-trusted auditor Rajendra Singh Lodha, a senior family-member Sudarshan Birla on Friday addressed a formal press conference at Birla Buildings, saying that a landmark judgment had been delivered.

"Justice has come to the rescue of charity,'' he said.

The Lodhas, however, obtained a stay on the order, soon after the judgment and June 13 has been fixed for hearing the matter.

"It may go up to the Supreme Court, but our stand has been vindicated,'' N. G. Khaitan, Birla solicitors remarked. Fox & Mandal, solicitors to Mr. Lodha, said Justice Kalyan Jyoti Sengupta had passed the order for appointment of joint administrators only over the shareholdings of Mrs. Birla.

The joint administrators, comprising two from the legal profession, a chartered accountant and a reputed person from industry, have been appointed for two years or till the disposal of the ongoing probate proceedings, whichever is earlier.

The Birlas had opposed Lodha's petition seeking probate of a Will, which he had maintained, was made out by Priyamvada Birla in 1999 bequeathing to him the assets of the M P Birla group which include major companies like Birla Corp.

In one of corporate India's bitterest legal dispute over property, the Birlas maintained that M P Birla and his wife had made out in 1982 an irrevocable Will giving the entire property to Trust.

The appeal for an administrator was filed in December 2004 and is one of the many fronts (including a criminal charge) that the Birlas have decided to ensnare Mr. Lodha into. "The judgment has vindicated the family's stand,'' Mr. Birla remarked.

PTI adds:

The court allowed Mr. Lodha to continue as the Chairman of the company but directed him not to take any policy decision.

Printer friendly page  
Send this article to Friends by E-Mail