The arrests of HC remain at the new meeting in Lodha on two coasts of P Birla
Times News Network
Kolkata: The current head of the MP Group, Harsh Vardhan Lodha, has been reinstated on the board of Vindhya Telelinks and Birla Cables after the Calcutta High Court overturned the suspension of his re-election as director of the two companies.
Lodha's re-election and some other proposals were made at the annual shareholder meetings in 2019, but the two parliamentary companies Birla were unable to act on the resolutions as the court prevented them from publishing the results of their vote.
Monday's ruling clears the way for the publication of the results of several resolutions voted on at the annual shareholders meetings of Vindhya, Birla Cables and the flagship Birla Corp, and re-establishes Lodha's leadership in these companies. In the Birla Corp case, the resolutions included the payment of dividends to shareholders and the payment of earnings-based compensation to its non-executive chairman, Lodha, for the 2018-19 period.
Monday's ruling adds a new twist to the 16-year legal battle between the Lodha family and some members of the Birla clan over the
Priyamvada Birla estate. Priyamvada had bequeathed her inheritance to Lodha's late father, Rajendra Singh Lodha.
This is a vindication of our client's (Lodha) position that third party companies are not part of the probate lawsuit. It is a victory for corporate democracy, since the results of the polls carried out at the AGM clearly show what 99% of the shareholders want, said Fox&Mandal partner Debanjan Mandal.
However, Birlas' lawyer, N G Khaitan, said the Calcutta court of division has refused to enter into the merits of the matter and has held that it is for the Probate Court to decide the same. The division court has held that, in the facts of the case, the Probate Court should have first decided the question of jurisdiction raised by Lodha before granting any provisional relief and the order should have contained the reasons for granting such relief. Therefore, it has referred the matter to the Single Judge for first deciding the question of jurisdiction and, consequently, leaving aside the provisional orders, Khaitan said.
Monday's ruling follows after the three MP Birla companies appealed to the Calcutta High Court that their previous orders violate natural justice and fair play, contrary to the provisions of the 2013 Companies Law, and have the effect of restrict compliance with legal obligations. to conduct various business at annual general meetings.