SC upholds Calcutta HC verdict, Harsh Lodha to remain MP Birla Group head

KOLKATA/NEW DELH: Justice D.Y. Chandrachud and Justice Hrishikesh Roy of the Supreme Court on Monday dismissed an appeal filed by the Birlas and upheld the Calcutta High Court verdict of 22 April 2021, allowing Harsh Vardhan Lodha to continue as the Chairman of all MP Birla Group companies.

"Monday's Supreme Court verdict demolishes the charges of contempt of court brought against Lodha for not stepping down as the Chairman," said Debanjan Mandal, Partner, Fox & Mandal. "The verdict vindicates our faith in the judiciary as we continue to neutralise repeated attempts to disrupt the functioning of MP Birla Group companies."

The Birlas had fielded in the Supreme Court a battery of senior advocates such as Kapil Sibal, P. Chidambaram, K.V. Vishwanathan, Janak Dwarkadas and Akhil Sibal.

While dismissing the appeal, the Supreme Court on Monday directed Calcutta High Court to dispose of all outstanding appeals and cross-appeals over Lodha holding office as a Director in the MP Birla Group companies by 31 March 2022.

These appeals and cross-appeals arose from a contentious verdict passed by Justice Sahidullah Munshi of Calcutta High Court on 18 September 2020. Though he held that his court, which was hearing the dispute over the will of Priyamvada Devi Birla, didn't have the jurisdiction to interfere with the operations of MP Birla Group companies, he ordered Lodha to step down as Director.

Lodha immediately appealed against the verdict of 18 September 2020. The Division Bench of Calcutta High Court, comprising the then Chief Justice T.B. Nair Radhakrishnan and Justice Shampa Sarkar, said in an interim order on 1 October 2020 that Lodha could continue as the Chairman of MP Birla Group companies except on the strength of the shares of the estate of Priyamvada Devi Birla.

Eventually, in April this year, the Bench of Justice Radhakrishnan and Justice Sarkar dismissed a bunch of contempt petitions filed against Lodha and MP Birla Group companies for not complying with Justice Munshi's verdict which had been modified by the appeals court within days. The Birlas moved the Supreme Court.