Date:24/07/2004 URL: http://www.thehindu.com/2004/07/24/stories/2004072404501500.htm

Business

Birlas, Lodha in legal battle

KOLKATA, JULY 23. The legal battle between the Birlas and their auditor, Rajendra Singh Lodha, for the control of Rs. 5,000 crore worth of assets of the M P Birla group formally began today with the Calcutta High Court issuing notice to the Birlas even as Mr. Lodha sought dismissal of the caveats filed by the Birlas.

The probate section of the Calcutta High Court issued notice to the Birlas after entertaining the probate application of Mr. Lodha by the Registrar-in-Insolvency in connection with the disputed will of Priyamvada Birla, widow of M. P. Birla, who died on July 3, court sources said.

The notice was served as the Birlas had earlier filed a number of caveats to secure their right to be heard when the purported will would be taken up for legal authentication.

Immediately after receiving the notice, the Birla clan went into a huddle to finalise their next course of action in the legal battle, which is expected to be long-drawn, according to sources in the Birla family. But despite the court initiating the formal legal process for legal authentication of the disputed will, the Lodha side fired a salvo at the Birlas with a petition seeking dismissal of the caveats by four members of the Birla family.

Confirming the move, Debanjon Mondal of Lodha's solicitor firm, Fox and Mondal, said the petition had been filed against caveats by K. K. Birla, B. K. Birla, G. P. Birla and Yashovardhan Birla.

Following the serving of the notice on the Birlas now they have to come up with their opposition to the probate application of Mr. Lodha before the court within eight days of receipt of the notice.

Subsequently, the matter would be taken up as a suit in the Calcutta High Court.

Senior members of Birla family, including B K Birla and K K Birla went into a marathon meeting with their solicitors immediately after receipt of the notice from the court.

The Birlas have refused to accept the purported will of the late Priyamvada Birla right from the day it was revealed to them by Mr. Lodha on July 12.

PTI