Companies

Priyamvada Birla estate: Court vests control with 3-member panel

Jayanta Mallick Kolkata | Updated on November 12, 2019 Published on August 23, 2012

The Calcutta High Court on Thursday vested control of the Rs 5,000-crore estate of the late Priyamvada Birla, widow of M.P. Birla, with a three-member committee of administrators.

The Division Bench of Chief Justice J. N. Patel and Justice Soumitra Pal also empowered the committee to represent the estate. According to law experts, the control of the estate now passes to the committee instead of the Lodhas.

In January, the Court had appointed former Justice C .K. Thakkar; a former partner of KPMG A.C. Chakrabortti; and a former vice-chairman of Hindustan Lever and former director of Birla Corporation, M. K. Sharma, as the committee members.

The Court has now said the committee will also have the right and powers to be a registered member of Birla Corporation Ltd.

Four-week stay ORDER

The Court, however, granted a stay of operation of a portion of the order relating to exercise of powers as shareholders for four weeks.

Both the Birla and Lodha camps reacted differently to the judgment. A source in the Lodha camp said the Court did not direct the Administrators “to get themselves appointed as Directors or to run the Companies. The Court also did not direct the Administrators to interfere with the management of the operating companies. The Administrators will have to administer the estate of the deceased (not the M.P.Birla Group)”.

According to the Birla camp, the committee would exercise rights and powers inextricably linked to shares “as were being exercised by the deceased Priyamvada Birla,” including the group outfits.

“After considering implication of the judgment, a final decision in the matter may be sought from the Supreme Court”, the Lodha camp said.

>jayanta.mallick@thehindu.co.in

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Published on August 23, 2012
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