SC dismisses Birlas' plea, imposes Rs 10 lakh cost

New Delhi: The Birla family's bid to protect the Rs 5,000-crore estate of late Priyamvada Birla suffered a setback today with the Supreme Court dismissing three petitions that challenged the Calcutta High Court order which denied them the right to object to her purported 1999 will.
It also dismissed another petition filed by Birlas challenging R.S. Lodha's right to object to M.P. Birla and his wife Priyamvada's 1982 will, through which the couple left their property for charity.
However, through a purportedly revised 1999 will after her husband's death, Priyamvada had bequeathed her Rs 5,000-crore estate to Lodha.

A bench, headed by Justice S.B. Sinha, while dismissing the petitions, has imposed cost of Rs 10 lakh (Rs 2.5 lakh each) on the petitions filed by the three Birla family members – K.K. Birla, B.K. Birla and Yashovardhan Birla. It also directed the Birlas to deposit the money with the West Bengal Legal Services Cell within four weeks.
However, the bench while dismissing Lodha's petition upheld the caveatable interest of another Birla family member, G.P. Birla, executor of the purported July 13, 1982 will of M.P. Birla and his wife Priyamvada. Earlier, the High Court had held that G.P. Birla only had the right to challenge the purported 1999 will as a 'sham and invalid document'.
The apex court also allowed Lodha's plea challenging the appointment of Yashovardhan Birla as executor of the will.
Justice Sinha while reading the operative portion of the judgement also directed the High Court to decide the probate pleas expeditiously and hear the Priyamvada 1999 will first, followed by the 1982 will of M.P. Birla.
Challenging the High Court's decision, K.K. Birla B.K. Birla and Yashovardhan Birla submitted that it was not merely the power of the trustees but also their duty to see that the Rs 5,000-crore Priyamvada Birla estate was not being appropriated and was given to three public charities as designated under the mutual wills executed by M.P. Birla and Priyamvada in 1982.
As trustees and potential beneficiaries under the mutual wills of 1982, they were duty bound to contest the will of 1999 and oppose the grant of probate so that they were not being accused of breach of trust, they argued.
Lodha, on the other hand , said under the 1982 will, M.P. Birla's widow Priyamvada Birla had got the absolute rights in the property, and she had bequeathed the entire estate to Lodha after her death in July 2004 through a will of 1999.
"The three Birla members are opposing the probate because they have got nothing and want to claim interest by contesting the 1999 will," he said in its petition.
Their interests can be carried on by other Birla family member and the executor of the purported July 13, 1982 will – G.P. Birla - and others executors who have been given the right by the High Court to challenge the purported 1999 Will," Lodha added.
According to the petitions, the three Birla family members in their capacities as relatives of the deceased, had interests coupled with duty to ensure that the wishes of M.P. Birla (being a Hindu) to attain spiritual well being and atonement of his sins, if any, by bequeathing his property to charity after his demise or his wife's demise were fulfilled.
They further added that a Hindu by religion considered charity an essential part of religion, whereby he or she attains spiritual benefit.
sify.com; Monday, 31 March , 2008, 18:15Last Updated: Monday, 31 March , 2008, 19:03