The Supreme Court on Monday refused to intervene with the Calcutta High Court order dismissing contempt petitions filed towards Harsh Vardhan Lodha for persevering with as a director and chairman in firms of the MP Birla Group.
A bench of Justices DY Chandrachud and Hrishikesh Roy mentioned it was not inclined to intervene with the excessive courtroom order of April 22, as appeals are nonetheless pending there.
The prime courtroom directed the excessive courtroom to make an endeavour to get rid of the bunch of pending appeals as expeditiously as potential and in any occasion on or earlier than March 31, 2022.
The group firms headed by Mr Lodha are Birla Corporation, Universal Cables, Vindhya Telelinks and Birla Cable.
Appearing for the Birlas and petitioner Arvind Kumar Newar, a battery of senior attorneys Kapil Sibal, P Chidambaram, Ok V Vishwanathan and Janak Dwarkadas, mentioned the excessive courtroom is totally incorrect in dismissing the contempt petitions.
“The High court said that he has to comply with its order but he has not complied with directions. I am not interested in contempt or sending him to jail but I want him to be removed,” Mr Sibal mentioned.
Senior advocate Shyam Divan and advocate Sumeer Sodhi, showing for Vindhya Telelinks Ltd, mentioned a path be issued that every one the pending appeals earlier than the High Court are heard in 4 weeks.
Mr Divan mentioned that there have been a number of contempt petitions filed and reverse celebration have selectively chosen one contempt petition and so they have been repeatedly writing letters to the corporate.
He mentioned that they haven’t any registered share within the firm and for the reason that final two years the actions of the 2 of the three directors have continuously been to intervene with the affairs of the businesses below the guise of an unwarranted/ unlawful management by the Committee, not solely over the Estate but in addition over third-party trusts, societies and publicly-held firms that are a part of the MP Birla Group.
Senior Advocate Darius Khambata, showing for Mr Lodha, mentioned the the High Court’s single-judge verdict on September 18 final yr had refused to intervene with the resolutions handed on the annual basic conferences of the 4 manufacturing firms, the place his shopper was reappointed as director by an awesome majority of at the very least 97.98 per cent of votes solid in his favour.
The Birlas and the Lodha household are embroiled in a litany of courtroom proceedings over the M P Birla Group’s belongings.
On April 22, the High Court had dismissed a number of contempt petitions filed towards Mr Lodha for persevering with as a director and the chairman in firms of the M P Birla Group.
The High Court had additionally dismissed contempt proceedings towards different administrators of the businesses in view of findings of the courtroom that Mr Lodha has not dedicated contempt by attending board conferences as director/chairman of the corporate.
It had noticed that Mr Lodha’s participation within the board conferences “cannot be termed as contumacious violation of the order of this court as willful disobedience has not been proved beyond reasonable doubt.”
“There is a possibility that he could continue to hold office on the strength of the votes of public shareholders in exclusion to the votes of the APL (Administrators Pendente Lite) Committee and the promoter and promoter groups and PACs (persons acting in concert),” the courtroom had mentioned.
An APL is appointed by a courtroom to start probate proceedings throughout a lawsuit that challenges the desire.
The contempt petitions earlier than the High Court had been filed by the Birlas alleging willful violation of an order handed on October 1 final yr.
In that order, the High Court had declined to cross an interim keep on a single bench judgment over administering the Priyamvada Devi Birla Estate by a court-appointed committee, whereas clarifying components of the order below problem.
The excessive courtroom is listening to a probate software by Harsh Vardhan, whose late father R S Lodha had claimed that Priyamvada Devi Birla bequeathed her property, comprising the M P Birla Group, to him by a will.
The Birlas, one of many oldest industrial teams within the nation, have challenged the probate software by the Lodha household and so they have been concerned in a authorized battle over the management of the M P Birla Group for the reason that demise of Priyamvada Devi Birla in 2004.
Priyamvada Devi Birla’s husband M P Birla died in 1990.
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