INDIA BUSINESS WORLD OCTOBER (1^st - 20^th) 2007
The Month that was ...

HIGH COURT LETS LODHA MANAGE BIRLA ASSETS WITH RIDER

The Calcutta High Court has set aside justice Kalyan Jyoti Sengupta's order appointing administrators over the businesses and companies of late Priyamvada Birla. A division bench comprising justices Pinaki Chandra Ghose and Tapan Kumar Dutt held that it did not find any "necessity" to appoint any administrator over the estate of Priyamvada Birla. The division bench set aside the order appointing administrators. This means, the M P Birla group's assets will continue to be administered by Mr. R S Lodha. The bench, however, restrained Mr. Lodha from dealing with or disposing of the assets save and except in usual course of business and also from incurring expenses out of it except for maintaining the assets.

Mr. Lodha's counsel Debanjan Mandal said: "Mr. Lodha will maintain and furnish accounts of the estate, including of income and dividend earned from the shares of Priyamvada Birla." Only the operative part of the order was read out in the court and the detailed judgement is awaited, Mr. Mandal added.

The Birlas are expected to file an appeal in the Supreme Court challenging the division bench order.

Meanwhile, the Supreme Court hearing on the caveatable rights of several Birla family members was concluded and the judgement has been reserved.