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/or 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 Yashovardhan Birla in his affidavit in opposition has stated his caveatable interest amongst other as follows : The Lady and his caveator at the time of her death were co-trustees in a charitable trust known as R. D. Birla Kalyan Nidhi Trust. The Lady and M. P. had voting rights in the Bombay Hospital Trust on account of donation made by them to the said hospitals and as per Rules and Regulations of the said Bombay Trust such voting right vests in the male descendant of the deceased. He (this caveator) being eldest surviving male descendant of the Lady, is entitled to such voting right and this voting right cannot be taken away by a testamentary disposition. The Lady and this caveator are members of the Birla family. 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 interweaving of shareholding in such a manner that they are part of a complex pattern and evidence the involvement of members of the Birla family in such companies and co-management thereof by different members of the Birla family. The members of the Birla family in carrying on such business do act as trustees and/or in fiduciary capacity to all shareholders of the said companies as also the other members of the Birla family including those who hold shares directly or indirectly in such companies. The Lady and this caveator are in reality co-trustees and/or in fiduciary capacity to all shareholders of the said companies and different members of the Birla family including those who are shareholders of such companies. The properties sought to be bequeathed by and under the above testamentary instrument purport to include properties under the possession of the deceased which comprised of other ancestral properties of late M. P. or were acquired out of funds generated by the larger Hindu Family governed bv the Mitakshara School of Law which had not been partitioned and/or comprised of undivided family properties governed by Mitakshara School of Hindu Law.