Calcutta: The Calcutta High Court on Thursday restricted the role of interim administrators, who look after Priyamvada Devi Birla Estates (PDB), in the functioning of MP Birla Group companies. The Lodhas moved the court alleging that the administrators, appointed by the HC in 2012, they were interfering in the functioning of these companies.
A division bench said that the interim administrators, despite their legal backing, could not interfere in the internal affairs of the companies. “There cannot be any universal or dynamic injunction or direction (on the part of the administrator) affecting the future course of action of the companies. companies,” said the HC. Birla insiders indicated that the order would be challenged in the Supreme Court.
The 19-year legal battle began when Priyamvada Devi Birla died on July 3, 2004, leaving behind everything she owned to RS Lodha, her advisor. Immediately after her death, six members of different factions of the Birla families claimed the property and contested the will.
The bench said that the administrators, through their nominees, could decide how to pursue the interests of the State of Priyamvada Devi Birla, but added: “Such a process can only be done in a lawful manner and with due process of law.” The HC said administrators “cannot take steps to directly make or anticipate business decisions.” The court added that the role of Harsh Vardhan Lodha (son of RS Lodha) as chairman of the board of directors of Birla Corporation and as “legatee” could not be confused.



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