Financial Daily from THE HINDU group of publications Friday, Jul 16, 2004 |
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Corporate Disputes Corporate - Corporate Disputes Legal heir issue may open pandora's box Our Bureau
Security guards waiting to screen visitors entering Birla Park, the residence of Birlas, for the shradh ceremony of Priyamvada Birla, in Kolkata on Thursday. Parth Sanyal
Kolkata , July 15 THE stand of the Birlas that the ownership of the companies under the MP Birla Group should go to the legal heir of Priyamvada Birla, and not to Mr R.S. Lodha, who is not a member of the Birla clan, if taken to its logical conclusion, may open up a pandora's box . This is because the issue of legal heir is not clear and straightforward. M.P. Birla had no issue, either from his first wife or the second. His brother R.D. Birla had one son, Gajanan, who married twice. Ashok Birla was the son of Gajanan's first wife, Gopi, and Yashowardhan is Ashok's son. But then Gajanan also had a second wife, Sumitra, whose son is Madhukar and a grandson, Paritosh. This means Madhukar and Paritosh are also part of the Birla clan. However, the Birlas do not recognise Gajanan's second marriage and, therefore, the line of succession. Further, if the M.P. Birla Group companies came to be owned by Priyamvada after her husband's death, then, according to one interpretation, her relatives (i.e. her sisters and brothers), and not necessarily her husband's relatives, may also stand to become legal heirs to her property following her death. If that is so, then it may become an open issue whether the Birlas can really claim to be the sole legal heirs of Priyamvada.
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