Thursday, August 11 2005 18:41 Hrs (IST) - World Time -

Kolkata: In another twist to the battle between the Birlas and R S Lodha for the M P Birla group assets, some shareholders today (August 11, 2005) moved an appeal in the Calcutta High Court challenging a Company Law Board order that refused to order an investigation on who controlled the M P Birla group flagship company, Birla Corporation Limited.

Appearing for the petitioner before Justice Indira Banerjee, petitioner's counsel Sudipto Sarkar submitted that the CLB order did not hold which person or group of persons were in control of Birla Corporation and as such it was a fit case for investigation.

He prayed for setting aside the CLB order and send back the case to the CLB for a fresh hearing.

Appearing for Birla Corporation, counsel Jayanta Mitra submitted that the CLB order of April 25, 2005 clearly said that since the controlling interest in the company was still with the estate of Priyamvada Birla, wife of M P Birla, there was no need to order an investigation.

He claimed that this was a malafide application and it should be dismissed.

Justice Banerjee adjourned the hearing in the matter till next Thursday (August 18, 2005).

The shareholders, in their petition claimed that a trust could not have a mind of its own, and that it must be run by some person or a group of persons.

After Priyamvada's death in July 2004, Lodha, a Chartered Accountant and a Director of the group, had applied before the Calcutta High Court for grant of probate for a 'will', stated to have been executed by her bequeathing her estate valued at an estimated Rs 5000 crore in his favour.