First legal shots fired over Birla's will

R S Lodha, co-chairman of the MP Birla group and its trusts, took the first step towards getting the probate on the will of the late Priyamvada Birla by filing caveats in Kolkata courts on Wednesday.

The will bequeaths assets worth over Rs 5,000 crore (Rs 50 billion) of the M P Birla group to Lodha.

The Birla camp also filed a similar legal application to prevent Lodha from moving any legal process without notice to them, legal sources said. However, the matter could not be confirmed from Birla family sources.

With the filing of the caveat by Lodha, the Birlas will have to give notice to Lodha if they challenge the legality of Priyamvada Birla's will in courts.

Since the Birla family members have filed a similar caveat, the reverse also holds true. No side will be able to obtain a court order without the other side being represented.

Saktinath Mukherjee, one of the most successful civil lawyers in the state, is likely to support the Lodha caveat to get a probate of the will from the court of district delegate, Alipore, Kolkata.

The assets transferred to Lodha includes a 20 per cent share in Pilani Investments and Industries Ltd, the Birla family investment arm. Lawyers said it could be argued by the Birlas that a non-Birla could not own the shares.

But Pilani Investments is a listed company and has First legal shots fired over Birla's will external shareholders. In 2003, as many as 145,000 Pilani Investments shares had been pledged for Rs 112 crore by an investor to fund the Forbes Gokak buyback. Its shares are therefore not exclusive Birla property.

The law provides that to get probate of a will, a notice has to be given to all legal heirs of the deceased. This notice is to be served with an application for granting probate by Lodha. Even if Lodha is appointed the sole executor, the same legal system will be followed.

Asked whether the Birlas were doubting the veracity of the will, family patriarch BK Birla told PTI, "It is not the question of doubting the veracity. It may be correct, it may be wrong, but we will have to deal with it from legal point of view, for  which steps are being taken."

But other Birla sources said the will could be a fabrication.

Krishna Kumar, Basant Kumar, Ganga Prasad, Sudershan Kumar, Kumar Mangalam and Yashovardhan Birla have decided to move court to challenge the 4-page will.

"As per law, the property of a person goes to the nearest relative. How can an outsider claim the Birla family property?" B K Birla said.

Khaitan & Co is likely to represent the Birla family factions in the effort. Lodha will be the defendant.

Priyamvada was reportedly close to only one Birla scion — Nandini Nopany, daughter of KK Birla. She is a member of the MP Birla group boards and will continue to be so.

Kumar Mangalam Birla, who heads the Aditya Birla group, was not present during the opening of the will and also at the subsequent Birla family meetings.

The legal view is that any challenge to the validity of the will involve protracted litigation.

A plea, which the Birlas will adopt, is the fact that the natural legal heirs have been deprived. Courts have in the past decided such cases relating to wills on merit. Other grounds like the document being executed while the executor is under undue influence can also be cited.