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Companies Law - Highlights / Catch Notes

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The plaintiffs/appellants, as universal legatees of the estate ...


Legatees Lack Standing in Estate Dispute, APL Holds Property Rights.

December 18, 2024

Case Laws     Companies Law     HC

The plaintiffs/appellants, as universal legatees of the estate of Late Smt. Priyamvada Debi Birla, lack legal standing to initiate the suit seeking a declaration that the decision taken by the defendant/respondent-Company to obtain leasehold rights is illegal and void. Section 211 of the Indian Succession Act, 1925 vests the property of the deceased in the Administrator Pendente Lite (APL) appointed by the Testamentary Court, making the APL the legal representative. The plaintiffs, as legatees, cannot bypass the APL and assert rights over the estate directly. Their remedy, if aggrieved by the APL's functioning, lies in approaching the Testamentary Court. The plaintiffs are not "members" of the defendant-companies and cannot invoke the NCLT's jurisdiction u/ss 241 and 242 of the Companies Act, 2013. The High Court dismissed the application for interim injunction, finding the Single Judge's reasoned order justified and not warranting interference.

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