Kolkata, Oct 11 (UNI) The Birlas suffered a jolt today in the Priyambada Birla Will Case after the Calcutta High Court ruled that there was no need for an administrator to oversee the Rs 5,000 crore MP Birla Empire.
Justice Pinaki Chandra Ghosh issued the ruling on an appeal against a trial court order, challeging the appointment of administrator to run the business empire, which is now being controlled by auditor Rajendra Singh Lodha.
In May this year, Justice Kalyanjyoti Sengupta appointed four administrators for the MP Birla empire, on an appeal by the Birlas to protect the property that was presently running a number of trusts.
Justice Ghosh, while delivering the order, held that Mr Lodha, now chairman of the Birla Corporation could not make any expense from the property without consent of the court and dividend of the company was to be kept in a separate account.
The Birlas and Mr Lodha had been locked in a string of legal battle after Mr Lodha disclosed that Priyambada Birla had bequeathed the property by a will. The Birlas unitedly filed a number of cases before the court challeging the veracity of the will.