HC allows Harsh Vardhan Lodha to continue as MP Birla Group chairman
The 300-page verdict ruled that the lower court could not have interfered with the functioning of the companies, trusts and societies of MP Birla Group.
NEW DELHI: A division bench of the Calcutta High Court on Thursday ruled in favour of Harsh Vardhan Lodha continuing as Chairman of MP Birla Group. The order came a little over three years after a single judge of the high court passed an order directing removal of Harsh Vardhan Lodha as the Chairman of the MP Birla Group.
The 300-page verdict ruled that the lower court could not have interfered with the functioning of the companies, trusts and societies of MP Birla Group. The court also imposed several restrictions on the functioning of the committee of administrators, which in the past few years have taken several decisions and pressured companies, trusts and societies of the MP Birla Group to implement them.
In their verdict, the two judges clarified that the administrators can’t interfere with the internal affairs of companies, trusts and societies on directions of the single judge of the Calcutta High Court. The committee of three administrators was formed in pursuant to an order passed by the division bench of the high court in August 2012.
The committee of administrator comprised one member nominated by the Birlas, one by the Lodhas and a retired judge. Several retired judges have been appointed to this committee, the last one being Mohit S Shah on April 10, 2019. The case pertains to the estate of late Priyamvada Devi Birla, former Chairperson of MP Birla Group who died on July 3, 2004.
She had bequeathed her estate to her advisor and confidante Rajendra Singh Lodha, via a registered will dated April 18, 1999. After her death, Lodha became Chairman of MP Birla Group. Several members of the extended Birla family challenged Priyamvada Birla’s will, leading to a protracted legal battle.
Harsh Lodha is the son of the late Rajendra Singh Lodha. The estate in contention is currently under the custody of a three-member committee of administrators.
‘HC imposes restrictions on administrators’ panel’
The Delhi high court also imposed several restrictions on the functioning of the committee of administrators, which in the past few years have taken several decisions and pressured companies, trusts and societies of the MP Birla Group to implement them
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