Setback for Birlas in war of wills

Hindu undivided family claim takes a knock.

The Calcutta High Court today ruled that only Rajendra Singh Lodha and GP Birla had caveatable interests in the estate of the late Priyamvada Birla, or the MP Birla group. It discharged the caveatable interest of BK Birla, KK Birla and Yash Birla.

Lodha has not challenged the caveatable interest of Radha Mohta and Lakshmi Newar, sisters of the late MP Birla.

The court recognised GP Birla's caveatable interest on grounds that he is one of the executors of Priyamvada Birla's mutual will of 1982. Justice Kalyan Jyoti Sengupta also recognised Lodha's caveatable interest in MP Birla's mutual will of 1982.

The judgment implies that the court has rejected the Birla claim that it is a Hindu undivided family (HUF).

"I am determined to ensure that all the wishes of the late Priyamvada Birla are honoured--let the trust prevail," RS Lodha told Business Standard when contacted after the judgment.

Addressing a press conference, NG Khaitan, solicitor for the Birla family, however, said, "This is a victory for us, as well." He said whether one or more caveators were recognised was immaterial and, after going through the judgment, the Birlas could go for an appeal.

The Birla counsel has asked for four weeks' stay on the order to secure time for appeal.

BK Birla's caveatable interest was denied, despite being nominated as an executor recently in Priyamvada Birla's will of 1982. Similarly, Yash Birla was nominated in MP Birla's will of 1982 but his interest was rejected.

The court rejected the appointment of BK Birla as nominee executor in Priyamvada Birla's mutual will of 1982 but upheld the appointment of Yash Birla in MP Birla's mutual will.

In the case of KK Birla, the judge observed that he was not connected with Priyamvada Birla's will and was an executor in MP Birla's will. With this judgment there are three recognised caveators from the Birla side--GP Birla, Lakshmi Newar and Radha Mohta.

Any one of them can challenge the probate application for Priyamvada Birla's will of 1999.

The court has also decided to take up the probate of MP Birla's 1982 will first, in which Lodha has a caveatable interest, as opposed to the order in December, when Priyamvada Birla's 1999 will bequeathing all assets to Lodha was to be taken up first. Khaitan said the Birla side could file more caveats.

If GP Birla's caveatable interest has been recognised on the grounds that he is an executor then the other executors could also file caveats.

The other executors of Priyamvada Birla's will of 1982 are Kashi Nath Tapuriah, brother of Priyamvada Birla, and Pradip Kumar Khaitan, senior partner of Khaitan & Co.