Supreme Court Advocates for Childcare and Feeding Rooms in Public Spaces

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Supreme Court Advocates for Childcare and Feeding Rooms in Public Spaces The Supreme Court of India has suggested that the Union Government develop a comprehensive policy addressing the construction of feeding rooms and childcare facilities  in public places. This move aims to ensure that nursing mothers and their children can access basic amenities in a dignified and private manner, reinforcing their fundamental rights under the Indian Constitution. SC Encourages Policy Formulation A bench comprising Justice BV Nagarathna  and Justice N Kotiswar Singh  highlighted the absence of a structured framework to address this pressing issue. The court advised the Centre to propose a policy that could then be implemented across the states, scheduling the next hearing for December 10, 2024.   The apex court emphasized that before issuing formal directions, it was crucial to understand the Centre’s perspective on implementing the petitioner’s demand for childcare and feedi...

Oberoi Hotel Group Family Dispute: Delhi High Court Issues Injunction on PRS Oberoi’s Shares

Oberoi Hotel Group Family Dispute: Delhi High Court 

Issues Injunction on PRS Oberoi’s Shares


In a significant development in the Oberoi Hotel Group family dispute, the Delhi High Court on September 12, 2024, issued an interim order in favor of Anastasia Oberoi, daughter of the late veteran hotelier PRS Oberoi. The lawsuit, filed by Anastasia, has brought into focus the contentious issue of inheritance and the control of shares in EIH Limited, which manages the renowned Oberoi and Trident hotel chains.


The Dispute: Control Over PRS Oberoi’s Estate


The lawsuit was filed by Anastasia Oberoi, alleging that her brother Vikramjit Oberoi, sister Natasha Oberoi, and cousin Arjun Oberoi, along with the executors of PRS Oberoi’s will, were conspiring to obstruct the execution of the will and manipulate the distribution of shares and properties left behind by their late father. The case revolves around the control of the family’s substantial holdings in EIH Limited, Oberoi Hotels Pvt. Ltd., and Oberoi Properties Pvt. Ltd.


The suit is centered on the family’s alleged attempts to alienate shares held by the late PRS Oberoi in these companies, which Anastasia claims should be safeguarded until the will is executed in its entirety. The plaintiffs, including Anastasia and her mother, sought protection of their family home and the shares held by PRS Oberoi.


Interim Order by Delhi High Court


After a detailed hearing, the Delhi High Court, presided by Justice Navin Chawla, passed an interim order to protect the subject matter of the lawsuit. The court issued an injunction preventing the transfer or transmission of shares held by the late PRS Oberoi in EIH Limited, Oberoi Hotels Pvt. Ltd., and Oberoi Properties Pvt. Ltd. Justice Chawla noted that there was sufficient material on record to demonstrate the prima facie reliability of the will and codicil propounded by the plaintiffs.


Justice Chawla observed that:

 “The plaintiffs have made out a good prima facie case in their favor. The balance of convenience is also in favor of the plaintiffs and against the defendants. The plaintiffs are likely to suffer grave irreparable harm if the subject matter of the lawsuit, namely the shares and properties, are alienated during the pendency of the lawsuit before the defendants file their response.”


The court’s ruling ensures that Anastasia Oberoi and the other plaintiffs will continue to have possession of their family home and the shares held by their late father will not be alienated or transferred pending the outcome of the case.


Allegations and Counterarguments


The lawsuit, brought by Anastasia Oberoi and other plaintiffs, seeks a declaration that they are entitled to own, hold, and exercise all rights over specific shares of Oberoi Hotels Pvt. Ltd., Oberoi Properties Pvt. Ltd., and their capital contribution in Aravali Polymers LLP, all by virtue of the Will dated October 25, 2021, read with the Codicil dated August 27, 2022.


The plaintiffs sought an order to prevent the registration of any transfer or transmission of the shares held by late PRS Oberoi in these companies, except in favor of the legatees under the Will and Codicil.


On the other hand, the counsel representing Vikramjit Singh Oberoi and Arjun Singh Oberoi argued that the suit was not maintainable. They contended that according to a settlement agreement between the Testator (PRS Oberoi) 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 and were meant to devolve upon them after PRS Oberoi’s death. They further referred to a Will dated March 20, 1992, executed to give effect to this oral understanding.


Court’s Injunction on Share Transfers


In its order, the Delhi High Court restrained the defendants, including the executors of the will—Rajaraman Shankar, Daniel Lee Farrugia, and Natasha Devi Oberoi—along with the companies EIH Limited, Oberoi Hotels Pvt. Ltd., and Oberoi Properties Pvt. Ltd., from transferring or transmitting any shares held by the late PRS Oberoi. However, the court made an exception for the transmission of one Class-A share to Rajaraman Shankar, the COO of Oberoi Hotel Groups, for statutory purposes.


The court clarified that while Rajaraman Shankar may exercise voting rights to ensure statutory compliance, he is restricted from exercising those rights on any other agenda items beyond legal compliance matters.


Conclusion


The Delhi High Court’s interim order is a significant step in the ongoing family dispute over the estate of PRS Oberoi, safeguarding the interests of the plaintiffs until the court fully addresses the validity of the will and codicil. The case not only highlights the complex issues of family inheritance but also touches upon the corporate governance of one of India’s most prominent hotel chains. The final outcome will have important implications for both the Oberoi family and their substantial holdings in the Indian hospitality sector.

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