Oberoi Case: Delhi High Court stays transfer of shares

Business: Oberoi Case: The Delhi High Court has stayed the transfer of shares of EIH Limited and its holding companies Oberoi Hotels Private Limited (OHPL) and Oberoi Properties Private Limited (OPPL). The order comes amid an ongoing legal battle between Anastasia, her brother Vikramjit Oberoi, their sister Natasha Oberoi and their cousin Arjun Oberoi over the estate and will of PRS Oberoi. The court remained in limbo as Anastasia Oberoi, daughter of late hotelier PRS Oberoi, filed a case against her brother Vikramjit Oberoi, sister Natasha Oberoi and cousin Arjun Oberoi. In her complaint, she alleged that Vikramjit and Arjun colluded with the executor appointed by their late father to thwart the execution of their late father’s will. The case revolves around the control of an extended family in EIH Limited, which controls the Oberoi and Trident hotel chains. On September 12 , after a detailed hearing, Justice Naveen Chawla of the Delhi High Court issued an interim injunction in favour of Anastasia Oberoi and other plaintiffs to protect the substance of the case.

The court granted an injunction against PRS Oberoi’s shares, protecting Anastasia and her mother’s continued ownership of the family home.

The validity of the Will of late PRS Oberoi has been challenged by his son Vikramjit Singh Oberoi and his nephew Arjun Oberoi primarily on the ground that it “does not reflect the true feelings and wishes of late M.S. Oberoi (father of PRS Oberoi).”

Passing the interim order, Justice Chawla said the plaintiffs (Anastasia Oberoi and others) have placed sufficient material on record to prima facie establish the Will prepared by them and the credibility of the testator.

The Delhi High Court in its order also said that the interests of justice and the plaintiffs (Anastasia Oberoi and two others) can be safeguarded by restraining the transfer or transfer of any shares held by the defendants Rajaraman Shankar, Daniel Lee Farrugia, Natasha Devi Oberoi (testate of the deceased PRS Oberoi) and the defendants EIH Limited, Oberoi Hotels Private Limited and Oberoi Properties Private Limited in the defendant companies.

The exception was the grant of Class A shares to defendants Oberoi Hotels Pvt. Ltd. and Oberoi Properties Pvt. Ltd. to defendant Rajaraman Shankar (COO of the Oberoi Hotels Group).

However, the court clarified that Rajaraman Shankar can exercise his right to vote only for the purpose of complying with legal norms and filing statutory returns, but he is prohibited from exercising these rights on other issues on the agenda.

P R S Oberoi transferred the movable assets, namely the shares of the three holding companies – OHPL, OPPL and Aravali Polymers LLP – half to his daughter Natasha and the other half to the JSC Trust, of which Anastasia is the sole beneficiary.