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Meenakshi Periwal And Ors vs Gautam Gan And Ors
2024 Latest Caselaw 3132 Cal/2

Citation : 2024 Latest Caselaw 3132 Cal/2
Judgement Date : 30 October, 2024

Calcutta High Court

Meenakshi Periwal And Ors vs Gautam Gan And Ors on 30 October, 2024

ODSL-1
                     IN THE HIGH COURT AT CALCUTTA
                              ORIGINAL SIDE
                         Ordinary Original Civil Jurisdiction

                               IA NO. GA/1/2024
                              C.S. NO. 214 OF 2024

                      MEENAKSHI PERIWAL AND ORS.
                                 VS.
                         GAUTAM GAN AND ORS.

  BEFORE:
  The Hon'ble JUSTICE ANANYA BANDYOPADHYAY
  Date :October 30th, 2024
  VACATION BENCH


                                                                         Appearance :
                                                           Mr. Abhrajit Mitra, Sr. Adv,
                                                           Mr. Debanjan Mandal, Adv,
                                                        Mr. Sanjiv Kumer Trivedi, Adv,
                                                         Mr. Jishnu Chowdhury, Adv,
                                                    Ms. Soumya Ray Chowdhury, Adv.
                                                    Mr. Satadeep Bhattacharyya, Adv.
                                                               Ms. Iram Hassan, Adv.
                                                             Mr. Sanket Sarawgi, Adv.
                                                            Ms. Mahima Cholera, Adv.
                                                                  ...for the petitioners.

      The   Court:   The   learned    Advocate     representing    the    petitioners

submitted the petitioners to be the legatees under the last Will and

testament of Priyamvada Devi Birla and interested in the welfare and

protection of the estate and functioning of the respondent companies. It was

further submitted that the respondent no. 7 by an email dated 25th of

October, 2024 informed the petitioners and other parties to the

Testamentary Suit being No. 6 of 2004 of a decision taken by the Board of

Directors of the said companies to execute a lease agreement with Birla

Building Limited for acquiring leasehold rights in respect of a space

admeasuring about 1852 sq. ft. situated at the East block of the 7th Floor in

Birla Building at an exorbitant rent of Rs.4,93,039/- per month (Rs.

1,84,181 + Rs. 1,84,181 + Rs. 1,24,677) with increase of lease rent at the

rate of 15% per annum after expiry of three years.

The Learned Advocate representing the petitioners referred to

paragraph No. 217 of the order dated 14.12.2023 passed by the Division

Bench of this Court in APO NOS. 89, 90, 91, 92, 94, 95, 96 and 98 of 2020

which states as follows:

"Issue 3 ii) The very composition of the APL brews conflict of interest,

since two of the members represent the two warring factions and have left no

stone unturned to show their true colours in that regard. Thus, in view of the

discussion above, the only way in which the APL can function effectively is for

the third member, who is necessarily a retired nominated Judge, to act as

arbiter in case of conflict of decision between the other two members of the

APL. In case there is no resolution, the third member shall exercise veto

power. In case of major decisions (which decisions are 'major' for this purpose

shall be decided by the third member), the APL may seek appropriate orders

from the testamentary court. The APL must also keep in mind that it is not an

adjudicatory authority but merely the representative of the estate of the

deceased testatrix."

The Learned Advocate representing the petitioner further stated the

grant of lease to a rival claimant will affect the interest of the petitioners,

which fell within the purview of the major decisions to be executed

exclusively seeking appropriate orders from the testamentary court. It was

further submitted one M. K. Sharma who was the nominee of the petitioner

had addressed a letter dated October 25, 2024 expressing his dissent and

grievance against shifting of the office and registered office of the companies

to a place belonging to the Birla Buildings Group at an exorbitant rent as

aforesaid concerning execution of a lease yet to be accomplished with

respect of an additional space of 1852 sq.ft. situated at East Block of the 7th

Floor in Birla Building to Justice Shah.

The Learned Advocates Mr. D.N. Sharma, Ms. Pritha Basu, Mr.

Akansha Chopra, Mr. Nirmalya Dasgupta, Ms. Enakshi Saha, Mr. Debartha

Chakraborty, Mr. Krishnaraj Thackker, Mr. Saptarshi Kar appeared without

notice being served upon them and without filing respective vakalatnama to

represent the cause of the respondent companies as well as joint

administrator pendente lite. The Advocates controverted the status of the

petitioner to file the instant application objecting the maintainability of the

suit as well as the jurisdiction of a civil court. It was further stated that the

execution of a lease in question did not categorize a major decision

pertaining to the subject matter of the dispute pending before the

testamentary court. The petitioners being the share-holders are yet to be

recognized as legatees to the Will in question and referred to Paragraphs

No.212, 213, 215 and 218 of the judgment pronounced by the Division

Bench of this Hon'ble Court on 14th of December, 2023 in APO NOS. 89, 90,

91, 92, 94, 95, 96 and 98 of 2020 arising out of TS/6/2004.

The status of the petitioners to object to the execution of the aforesaid

leasehold rights over the property as aforesaid is to be decided after

considering the submissions of the respondent companies. The respondent

companies are yet to be legally represented through respective learned

Advocates filing their Vakalatnamas in the Court. Without assailing the oral

submissions of learned Advocates representing both the parties and

considering the documents in its proper perspective, it would not be prudent

on the part of this Court to form an opinion at this stage. Whether the

execution of the lease by the respondent companies to the detriment of the

lawful petitioners fell within the ambit of a major decision to be acted upon

seeking appropriate orders from the testamentary court cannot be decided

at this stage without hearing both the parties being legally represented.

The Learned Advocate for the petitioners is to serve the notice upon

the respondents along with a copy of the application and annexed

documents prior to the next date of hearing and file an affidavit of service to

that effect.

For ends of justice and to avoid further complications, without

considering the merits of the case, the execution of the lease agreement

pertaining to an additional space measuring 1852 sq.ft. situated at East

Block of the 7th Floor in Birla Building is stayed till 4th of November, 2024.

Let the instant application along with the plaint be placed before the

regular Bench for its consideration on 4th of November, 2024.

(ANANYA BANDYOPADHYAY, J.)

KB

 
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