Many a slip betwixt cup and Lodha

KOLKATA: The will of the late Priyamvada Birla, who bequeathed the MP Birla group''s assets to RS Lodha, now seems to be mired in a cobweb of legal wrangles.
Legal experts here say Lodha does not automatically become the chairperson of the M P Birla group companies by virtue of the will — even if it is probated.
Says leading solicitor Utpal Majumdar, "Lodha can become chairman only after the board concerned ratifies a proposal in that respect." Renowned barrister Jayanta Mitra adds: "The will has no legal sanctity unless it is probated and Lodha is not entitled to enjoy the benefits under the will till it (probate) happens.But he can apply before the court to be appointed administrator of the properties pending litigation."
It may be recalled that Yashovardhan Birla filed a caveat on Friday in the probate section of the district judges court.
R.L. Gaggar, another leading solicitor says: "As per Section 211 of the Indian Succession Act, the property remains vested with the executor till a probate is made. But there cannot be any legal enforceability of the will till it is pro-bated."
He adds that Lodha would have to apply for pro-bate along with an af-fidavit of the assets of the M.P. Birla group and Priyamvada’s original will. Another crucial issue is whether Lodha’s audit firm, Lodha and Company, can continue as the auditor of the firms in the Birla empire, since by virtue of the will the MP Birla group’s shareholding in Pilani Investments and Industries Corporation Ltd now goes to Lodha.
Pilani has cross-holdings in Birla companies like Grasim Industries, Hindalco, Birla VXL, Mysore Cements, among others, where Lodha and Co is the auditor. Gaggar said Lodha should not continue as the auditor in these firms (subject to exactly what is written in the will) because he becomes an "interested party" by virtue of the will. Similar views were echoed by Majumdar.
Under the will, Lodha’s status has been converted from a professional to a proprietor. Majumdar added: "It has also to be kept in mind that Lodha does not immediately become the owner of the MP Birla group’s stake (25 per cent as claimed by the Birla family itself) in Pilani Investments. He has to apply for transfer of shares in his name before the registrar of companies and the application has to come to Pilani as well for transfer of shares."