A division bench of the Calcutta Excessive Court docket on Thursday dismissed the contempt petitions filed by the Birlas towards MP Birla Group chairman Harsh Vardhan Lodha for persevering with as a director and chairman within the group firms.
The bench, comprising chief justice Thottathil B Radhakrishnan and justice Shampa Sarkar, handed a “landmark judgement” dismissing a number of contempt petitions filed towards Lodha for persevering with as a director and chairman in Birla Company, Common Cables, Vindhya Telelinks and Birla Cable, 4 listed group firms, in response to a press release issued by the Lodhas.
Earlier, the Birlas had filed contempt petitions towards Lodha on his continuation on the boards of the MP Birla Group firms, alleging violation of an order handed by a division bench of the Calcutta Excessive Court docket on October 1, 2020. The division bench of the excessive courtroom, in its October 1 order, didn’t grant any keep on the one bench’s order, which had restrained Lodha from holding any workplace in any of the entities of the group throughout pendency of the swimsuit involving the contested will of late Priyamvada Devi Birla, the widow of MP Birla.
The decision of the division bench of the excessive courtroom on Thursday “cleared the decks” for Harsh Vardhan Lodha to proceed because the chairman of all firms of the MP Birla Group, stated Lodha’s advocate Debanjan Mandal, accomplice, Fox & Mandal.
“Our consumer is deeply grateful to the very best honorable courtroom of the state for this resounding victory…Prior to now two years, relentless assaults have been mounted, not solely on Mr Lodha, but in addition on the unbiased administrators and executives of the MP Birla Group firms. Thursday’s verdict vindicates the very best degree of governance requirements maintained in these firms from the instances of the late Madhav Prasad Birla,” Mandal added.
“The courtroom immediately dismissed the contempt purposes filed towards HV Lodha and others. We’re awaiting the copy of the order handed immediately and would determine the long run plan of action after learning the identical,” a Birla spokesperson stated.
The genesis of over 17-year-old authorized row between the Birlas and the Lodhas over controlling the over Rs 5,000-crore Birla Property lies within the contested will of late Priyamvada Devi Birla, which was executed in July 1982 after the purported will allegedly transferred the shares of the MP Birla Group, collectively referred to as because the Birla Property, in favour of Rajendra Singh Lodha.
The authorized tussle started after the July, 1982 wills that gave away all of the property to charities however one other will of April 18, 1999 gave them to Rajendra Singh Lodha, now being pursued by his son Harsh Vardhan Lodha, and different heirs.