Oberoi Grp family dispute: Delhi HC injuncts shares held by late PRS Oberoi
The court ordered an injunction in connection with the shares held by PRS Oberoi. Photo: Wikimedia Commons
Veteran hotelier late PRS Oberoi’s daughter Anastasia Oberoi, has filed a suit in the Delhi High Court against her brother Vikramjit Oberoi, sister Natasha Oberoi, and cousin Arjun Oberoi.
In her lawsuit, she alleged that Vikramjit and Arjun, in conspiracy with the executors appointed by their late father, were attempting to obstruct the execution of his will.
On September 12, 2024, the bench of Justice Navin Chawla of Delhi High Court, after a detailed hearing, issued an interim order in favour of Anastasia Oberoi along with the other plaintiffs to protect the subject matter of the lawsuit.
The court ordered an injunction in connection with the shares held by PRS Oberoi, and protected Anastasia’s and her mother’s continued possession of their family home.
While passing the interim order, Justice Chawla said, there is sufficient material placed on record by the plaintiffs (Anastasia Oberoi and others) to demonstrate the prima facie reliability of the Will and the Codicil of the Testator propounded by them.
Justice Chawla also stated that “I find that the plaintiffs have been able to make out a good prima facie case in their favour. The balance of convenience is also in favour of the plaintiffs and against the defendants. The plaintiffs are likely to suffer grave irreparable harm in case the subject matter of the lawsuit, that is the shares and properties, are alienated during the pendency of the lawsuit and before the defendants file their response and the same is considered by this Court.”
This order comes amid a legal dispute between Anastasia and her brother Vikramjit Oberoi, sister Natasha Oberoi, and cousin Arjun Oberoi, regarding the estate of PRS Oberoi and his will.
The case revolves around the control of the family’s substantial holdings in EIH Limited, which manages the Oberoi and Trident hotel chains.
The Delhi High Court, in its order, also stated that the interests of justice and the plaintiffs (Anastasia Oberoi and two others) can be safeguarded by restraining defendants Rajaraman Shankar, Daniel Lee Farrugia, Natasha Devi Oberoi (executors of the will of the late PRS Oberoi) and defendants EIH Limited, Oberoi Hotels Pvt. Ltd and Oberoi Properties Pvt. Ltd., from transferring or transmitting any shares held by the late PRS Oberoi in defendant companies.
An exception was made for the transmission of one Class-A share in defendants Oberoi Hotels Pvt. Ltd. and Oberoi Properties Pvt. Ltd. to defendant Rajaraman Shankar (COO Oberoi Hotel Groups).
However, the court clarified that while Rajaraman Shankar may exercise his voting rights only for the purpose of ensuring statutory compliance and filing statutory reports, he is restricted from exercising those rights on any other agenda items.
Through the lawsuit, Plaintiffs sought direction to declare that Plaintiffs are entitled to own, hold, enjoy and exercise all rights in 1600 A class shares and 62,075 B Class shares of Oberoi Hotels Pvt. Ltd. and 100 A Class shares and 2,600 B Class shares of Oberoi Properties Pvt. Ltd. and 46 percent capital contribution in Aravali Polymers LLP by virtue of the Will dated October 25 2021 read with Codicil dated August 27 2022 of the late PRS Oberoi.
The suit also sought direction to grant a decree of permanent injunction against Rajaraman Shankar, Daniel Lee Farrugia, Natasha Devi Oberoi and Oberoi Hotels Pvt. Ltd and Oberoi Properties Pvt. Ltd., from registering any transfer or transmission of shares held by Late PRS Oberoi in Defendant Oberoi Hotels Pvt. Ltd and Oberoi Properties Pvt. Ltd. Other than in favour of the legatees under the last will dated October 25 2021 read with Codicil dated August 27 2022 of Late PRS Oberoi.
On the other hand, the counsel appearing for the Vikramjit Singh Oberoi and Arjun Singh Oberoi, contended that apart from the suit not being maintainable, in terms of the settlement that had been arrived at between the Testator and his father-Rai Bahadur MS Oberoi, the shares of Oberoi Hotels Pvt. Ltd and Oberoi Properties Pvt. Ltd were held by the Testator in trust for the defendants Vikramjit and Arjun and were to devolve upon the death of the Testator on the said defendants.
Further, to give effect to such an oral understanding, the Testator also executed a Will dated 20.03.1992 in terms thereof.
Anastasia Oberoi and other plaintiffs were represented by Senior Advocates Sandeep Sethi, Arvind Nigam, Arun Kathpalia and Jayant Mehta instructed by Advocates Swapnil Gupta, Shivambika Sinha and Nimita Kaul, Partners of Capital Law Chambers LLP and Advocate Aadil Singh Boparai and his chamber.
The defendants were represented by Senior Advocates Neeraj Kishan Kaul, Amit Sibal, Rajiv Nayar along with Advocates Aseem Chaturvedi, Aakash Bajaj, Shivank Diddi, Shankh Sengupta, Ribi V.Garg, Shreyash Sharma, Preorna Banerjee, Sania Abbasi and others.
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First Published: Sep 14 2024 | 2:17 PM IST