Mahima
The Calcutta High Court dismissed the contempt petitions filed by the Birlas against Chairman of MP Birla Group, Harsh Vardhan Lodha.
Following the judgment, Lodha is going to continue as a director and chairman in four listed group companies – Birla Corporation, Universal Cables, Vindhya Telelinks and Birla Cable.
The division bench of Calcutta High Court comprising of Chief Justice Thottathil B Radhakrishnanand Justice Shampa Sarkar dismissed several contempt petitions against Lodha for continuing as a director and chairman.
Previous year the Birlas had filed multiple contempt petitions against Lodha alleging violation of order passed by a division bench of Calcutta High Court.
The division bench in its previous year’s order did not grant any stay on the single bench’s order which restrained Lodha from holding any office under the group companies.
Lodha was restrained as there was a pending suit against the contested will of late Priyamvada Devi Birla, the widow of M P Birla.
The Calcutta High Court’s verdict ‘cleared the decks’ for Harsh Vardhan Lodha to continue as the Chairman of all companies under M P Birla Group.
Lodha’s advocate Dabanjan Mandal commented, “Our client is deeply grateful to the highest honorable court of the state for this resounding victory… In the past two years, relentless attacks have been mounted, not only on Mr. Lodha, but also on the independent directors and executives of the M P Birla Group Companies. Thursday’s verdict indicates the highest level of governance standards maintained in these companies from the times of the late Madhav Prasad Birla.”
N G Khaitan, representing Birla commented, “The court today dismissed the contempt applications filed against HV Lodha and others. We are awaiting the copy of the order passed today and would decide the future course of action after studying the same”.