Wednesday, August 24 2005 18:24 Hrs (IST) - World Time -

Kolkata: In a boost for chartered accountant Rajendra S Lodha, the Calcutta High Court today (Aug 24, 2005) dismissed an appeal by a section of shareholders against a Company Law Board order, seeking an investigation on who was controlling the M P Birla group flagship company Birla Corporation Ltd.

Justice Indira Banerj rejected the appeal by the shareholders observing that the Company Law Board had decided that the controlling interest in the company was still with the estate of Priyamvada Birla, wife of M P Birla, and as such there was no ground for ordering any further investigation.

Lodha is at present the chairman of Birla Corporation Limited, for which the annual general meeting for 2004-05 would be held on August 26 in Kolkata.

Justice Banerjee, however, observed that there was no evidence whether the Birlas had set up the said shareholders in filing the case, as alleged by Lodha, who is embroiled in several a legal battle with the Birlas for the assets of the M P Birla group.

The petitioners had claimed that an estate could not have a mind of its own and as such an investigation was necessary to find out the true0persons controlling the company.

The shareholders had moved the appeal against a Company Law Board order that refused such an investigation on the ground that the c7n-[d7terest in the company was still with the estate of Priyamvada Birla.

Lodha's counsels had claimed during their submission that there had been no change in management or shareholding pattern in the company since the death of Priyamvada, who purportedly bequeathed the Rs 5000 crore worth assets of the M P Birla group through a 'will' to Lodha.