PRIYAMVADA DEVI BIRLA Vs. MADHAV PRASAD BIRLA

JUDGEMENT

(1.) THE above application being G. A. No. 2721 of 2004 has been taken out by the propounder/executor of a testamentary document dated 18th April, 1999 of the above testatrix Priyamvada for discharge of Caveats lodged by one Krishna Kumar Birla, Basanta Kumar Birla, one Ganga Prosad Birla and one Yasha Bardhan Birla. Sri R. S. Lodha, applicant herein says that the aforesaid four persons have no caveatable interest in the estate of the Priyamvada Devi Birla since deceased (hereinafter referred to as the Lady)) as they do not have any slightest interest in the estate left by the Lady. Only Laxmi Devi Newar and Radha Devi Mohta the sisters of her late husband Madhab Prasad Birla, since deceased (hereinafter in short M.P.) are the heiresses and legal representatives to succeed the estate left by Lady in case of death intestacy. Obviously, it is the caveators at this stage who are to establish their right to maintain the caveats. In their affidavits in opposition in answer to the aforesaid charge four persons have separately stated as follows : G.P. Birla stated in his affidavit that in 1981 both the deceased lady and her husband namely M. P. Birla pursuant to agreement had executed mutual Wills, both dated 10th May, 1981. On 13th July, 1982 by consent they revoked the said mutual Wills but agreed once again, each other, as to disposition of their respective estates on their death in favour of the public charities as ultimate beneficiary and those Wills made pursuant to such agreement would be irrevocable and would remain unaltered. He says he is one of the surviving co -executors of the Will of the Lady. By this Will the Lady directed the executors to take possession of her entire estate and make over, donate or settle the same for the purpose of charity at their absolute discretion. That apart he has claimed that he is the paternal first cousin of late M. P. and if the genealogical table is looked into then it will appear that this deponent has possible chance of succeeding to the estate of the Lady in case of death intestacy. He is also co -owner of the disposed of property namely orchards at Kumaun. The deceased was the member of a larger Birla family so also this deponent. The Birla family at all material times carried on and still carries on several businesses through different companies. In some of these companies there is an interweaving shareholding in such a manner that they are part of complex pattern and thus evidence of involvement of the members of the Birla family is apparent in such companies in management thereof the different members of the Birla family. The deceased testatrix and the deponent are in reality co -trustees and/or in fiduciary capacity to all the shareholders of such companies and different members of the Birla family including those who are shareholders of such companies whether directly or indirectly, where both of them were in management. The deceased was a trustee and/or in a fiduciary relationship to the deponent and other members of the Birla Family including himself who has shares directly and/or indirectly where the deceased was in management.

(2.) BASANT Kumar Birla being one of the caveators in his affidavit while explaining his caveatable interest has stated among others that he is the paternal first cousin of late M. P. Birla, the husband of the testatrix. He was one of the co -owners of the orchard along with said testatrix. The deceased and this caveator till the time of her death were directors of Century Textiles Industries Ltd. of which he is the Chairman and Pilani Investors and Investment Corporation Ltd. He is the member of the Birla Family along with the said testatrix. There is an interweaving of shareholdings in such a manner that they are part of well thought out pattern, and evidence of the involvement of members of the Birla Family in such companies and co -management thereof by different members of the Birla Family though a particular branch may be looking after a particular group of companies of the Birla family. The deceased testatrix and this caveator are in reality co -trustees and/or in a fiduciary capacity to all shareholders of such companies and different members of the Birla family including those who are shareholders of such companies, whether directly or indirectly, where both of them were in management of the deceased was a trustee and/ox in a fiduciary relationship to him and other members of the Birla family including himself who held shares directly or indirectly in such companies where the deceased oversaw its operation' after the demise of her husband.

(3.) THE caveator K.K. Birla say that he is one of the executors of one of the mutual Will dated 13th July 1982 executed by the said couple. It would appear from the Will of her husband that the Lady had a life interest in the estate of her husband. She had no competence to dispose of her own and combined estate by alienation or dissipation in a manner inconsistent with the terms and tenor of the mutual Wills. The subsequent disposition made in favour of R. S. Lodha under the alleged will dated 18th April 1999 and alleged codicil, dated April 15, 2003 is therefore, unlawful, unauthorized and penal, as the entire estate of the deceased stood impressed with trust in terms of the mutual wills. Accordingly on her death surviving executors of the mutual Will of the deceased and her late husband are entitled to take possession of entire estate and make over, donate or settle the same for the purpose of charity at their absolute discretion. This eaveator has common ancestor namely Raja Baldev Das Birla and is male lineal descendant of the said Raja B. D. Birla. He is the paternal first cousin of late M. P. The husband of the testatrix. The deceased testatrix and this caveator till the time of her death were co -trustees of charitable trust known as Mahadebi Birla Memorial Charitable Trust and till the time of her death were directors inter alia of Pilani Investment and Industries Corporation Ltd. and Birla Brothers Pvt. Ltd. The properties sought to be bequeathed by or under the alleged last Will and testament purport to include properties under the possession of the deceased which comprise of either ancestral properties of Late Madhab Prasad Birla or were acquired out of funds generated by the larger Hindu Undivided Family governed by Mitakshara School of Law which had not been partitioned and/or comprised of joint family properties.