Birla counsels step back on administrator

The Birla counsels today made a climbdown from their earlier stand of appointment of an administrator for the M P Birla group and asked for a restraint order for Rajendra Singh Lodha in dealing with Priyamvada Birla's companies.

Justice K J Sengupta made it clear in the court that at the ad interim stage, prayer for appointment of administrator would not be considered, only the question of passing an restraint order against Lodha would be considered. The issue of administrator would be considered after filing of affidavits , for which Birlas have no objection.

The counsel for Birlas and two sisters Lakshmi Newar and Radha Mohta argued that extent of the property should be considered for passing any order restraining any individual from dealing with or disposing of the assets left by Priyamvada Birla.

It was also argued by the Birlas that 1999 will was unnatural and the executor of the will was neither related to the Birla family nor a legal heir of Priyamvada Birla, and therefore should be restrained from dealing with or disposing off the estate and changing the nature and character of the shareholding pattern of Priyamvada Birla's companies.

Counsel for Lodha said that Birlas were desperate to ruin the estate of M P Birla. While opposing the arguments of the Birla group, counsel for Lodha said that no case was made out for obtaining any interim order. It was stated that the B K Birla group tried to ruin the M P Birla estate by way of moving petitions after petition in the Company Law Board(CLB).

It was also stated that each and every director was appointed in presence of Priyamvada Birla and after her death no change of composition of any shareholding of Priyamvada Birla had taken place as CLB had already passed a restrained order.

The hearing will continue on December 23. Meanwhile the criminal case was not listed today and would also be tomorrow.