KOLKATA: The Calcutta excessive court docket on Thursday restricted the position of interim directors, who’re taking care of the Priyamvada Devi Birla Estates (PDB), within the functioning of the M P Birla Group firms. The Lodhas had moved court docket alleging that the directors, appointed by the HC in 2012, have been interfering within the operating of those firms.
A division bench stated the interim directors, regardless of their authorized backing, couldn’t intrude with the interior affairs of the businesses.”There can’t be any common or dynamic injunction or route (by the administrator) affecting the longer term plan of action of the businesses,” the HC stated. Birla insiders indicated the order could be challenged within the Supreme Court docket.
The 19-year-old authorized battle began when Priyamvada Devi Birla died on July 3, 2004, forsaking every little thing she owned to R S Lodha, her adviser. Instantly after her dying, six members of various factions of Birla households staked declare to the property and challenged the desire.
The bench stated the directors, by their nominees, may resolve assert the pursuits of the Priyamvada Devi Birla Property, however added, “Such course of can solely be carried out in authorized method and in due strategy of regulation.” The HC stated the directors “can’t bounce steps to immediately take or pre-empt enterprise selections”. The court docket added Harsh Vardhan Lodha’s (son of R S Lodha) position as chairman of the board of administrators of Birla Company and as a “legatee” couldn’t be combined up.
A division bench stated the interim directors, regardless of their authorized backing, couldn’t intrude with the interior affairs of the businesses.”There can’t be any common or dynamic injunction or route (by the administrator) affecting the longer term plan of action of the businesses,” the HC stated. Birla insiders indicated the order could be challenged within the Supreme Court docket.
The 19-year-old authorized battle began when Priyamvada Devi Birla died on July 3, 2004, forsaking every little thing she owned to R S Lodha, her adviser. Instantly after her dying, six members of various factions of Birla households staked declare to the property and challenged the desire.
The bench stated the directors, by their nominees, may resolve assert the pursuits of the Priyamvada Devi Birla Property, however added, “Such course of can solely be carried out in authorized method and in due strategy of regulation.” The HC stated the directors “can’t bounce steps to immediately take or pre-empt enterprise selections”. The court docket added Harsh Vardhan Lodha’s (son of R S Lodha) position as chairman of the board of administrators of Birla Company and as a “legatee” couldn’t be combined up.
