CLB upholds appointment of Lodha in Birla Corp board

The Company Law Board dismissed a petition that challenged appointment of Harsh Vardhan Lodha to the company board.

In a judgement on a petition filed by Jodhraj Laddha,Arun Kumar Jhunjhunwala,Kanupriya Bagrodia,Sunita Parasramka,S Chatterjee and Rameshwar Jute Mills supported by Birla clans,Company Law Board (CLB) Chairman S Balasubramanian said the plea was motivated and was a personal attack on Lodhas.

The Birlas and Lodhas have been engaged in a legal battle since 2004 over the will of late Priyamvada Devi Birla,who had bequeathed 62.9 per cent controlling stake in the company to R S Lodha,who died later on October 3,2008.

Harsh Vardhan Lodha is the son of R S Lodha.

“I find that the petition deserves to be dismissed…the petition is a motivated one for an ulterior purpose of ousting Lodha from the management and not for protecting the interest of the company,” said Balasubramanian.

Moreover,the CLB rejected the allegations of oppression and mismanagement in Birla Corporation,saying “the grievances of the Birlas through the petitioner is against Lodha as a person,and therefore the purpose is to attack him and similarly (in) the application,they are against Harsh Lodha.

In other words,the petition is not against the company.”