Lodha scores over Birlas in SC

KK, BK, Yash Birla Have No Say In Probate Proceedings: Apex Court

The Times of India 1st April 2008 Delhi P. 25

Rajendra Singh Lodha, who claims sole rights over MP Birla’s assets through his wife Priyamvada’s 1999 will, scored a decisive victory over the Birlas on Monday as the Supreme Court virtually shut out K K Birla, Basant K Birla and Yashovardhan Birla from having a say in the will probate proceedings.

Probate is the process for transfer of legal title of the property from the deceased to his/her proper beneficiaries. The term “probate” is akin to “proving” the existence of a valid will, or determining and “proving” the actual legal heirs. After Priyamvada’s death on July 3, 2004, Lodha had moved the court on July 19, 2004, seeking grant of probate of her 1999 will, declaring him as the sole successor of M P Birla’s estate estimated at Rs 2,500 crore.

This had kicked off a series of litigation between Lodha and the Birlas, with the latter moving the Calcutta High Court accusing Lodha of forging the will as well as seeking to have a say in the probate proceedings. The HC had dismissed their pleas, making KKB, BKB and YB move the apex court. Upholding the HC order, a Bench comprising Justices S B Sinha and H S Bedi in a 99-page judgment dismissed the Birlas’ pleas and asked them to pay a cost of Rs 2.5 lakh to West Bengal Legal Services Authority within four weeks.

With this, the probate proceedings initiated by Lodha will continue in the court where it was originally initiated without KKB, YB and BKB having any say in the matter.

Though most of the Birlas have been ousted from having a say in the probate proceedings, which could lead to transfer of M P Birla’s estate to Lodha if the latter proves the genuineness of Priyamvada’s 1999 will, MPB’s brother G P Birla would be the lone voice to raise objections as his participation in the probate proceedings has not been challenged. The petitions by the Birlas had challenged a December 21, 2006, order of the Calcutta HC disentitling them from participating in the probate proceedings.

Both sides had lined up legal stalwarts to press their view on the controversy created by the bequeathing of MPB’s entire assets to Lodha by Priyamvada through the 1999 will, which was allegedly drafted after scrapping the ‘mutual will’ she and her husband prepared in 1982.

Writing the judgment for the Bench, Justice Sinha said the HC had rightly held that GPB would have a say in the probate proceedings as he had been named as an executor in the 1982 will. “There is nothing to show that BKB or any other executor accepted the office of the executor during the lifetime of MPB or Priyamvada,” he said.

The Bench said the probate proceedings relating to the 1999 will would be taken up first by the HC followed by the 1982 will and if possible, judgments on both should be given simulataneously.

The Birlas had the assistance of senior advocates Ram Jethmalani, Arun Jaitley and K K Venugopal while Lodha had engaged senior advocates Harish Salve, Mukul Rohtagi and R F Nariman to press his side of the story.

Meanwhile, a sense of relief spread through the RS Lodha camp in Kolkata on Monday. The Supreme Court judgment has cleared the way for hearing to begin on an application by Lodha to probate a 1999 will by M P Birla’s widow Priyamvada Devi Birla. ‘‘It is a landmark victory for us. Hearing of the probate application will begin very shortly,’’ said Lodha’s solicitor Debanjan Mondal.

Supreme Court has dismissed the petitions filed by KK, BK and Yash Birla, giving R S Lodha (right) a relief

With thanks from The Time of India
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