The Delhi High Court has issued an interim order to restrain the transfer of shares held by EIH and its subsidiaries—Oberoi Hotels (OHPL) and Oberoi Properties (OPPL)—amid a contentious legal battle among the children of renowned hotelier PRS ‘Biki’ Oberoi. The dispute centers on the control of substantial family holdings in EIH, which operates the Oberoi and Trident hotel chains, and involves allegations surrounding the execution of PRS Oberoi’s will.
Background of the Dispute
The legal conflict, which has reached the Delhi High Court, was initiated by PRS Oberoi’s daughter, Anastasia Oberoi, who has filed a suit against her siblings and a cousin. The suit includes allegations that her brother Vikramjit Oberoi and cousin Arjun Oberoi, in collusion with the executors appointed by their deceased father, were attempting to obstruct the execution of PRS Oberoi’s will. Anastasia and her mother, Mirjana Jojic Oberoi, have challenged the handling of the family’s significant holdings in EIH and other assets as outlined in PRS Oberoi’s will.
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Court’s Interim Order and Rationale
On September 12, Justice Navin Chawla of the Delhi High Court granted an interim order in favor of Anastasia Oberoi. The court restrained the transfer of shares and protected the plaintiffs’ continued possession of their family home. Justice Chawla noted that Anastasia had presented a “good prima facie case” and that the plaintiffs would face “grave irreparable harm” if the shares and properties were alienated.
The interim order also recognized the prima facie reliability of PRS Oberoi’s will and outlined concerns about potential unauthorized sales of shares. The suit involves the control of 1,600 A-class shares and 62,075 B-class shares in Oberoi Hotels, as well as 100 A-class shares and 2,600 B-class shares in Oberoi Properties. PRS Oberoi’s will, as per the plaintiffs, allocated these shares and other movable properties between his daughters and AO Trust, with Anastasia being the sole beneficiary of the latter.
Dispute Over the Bijawasan Villa
In addition to the shares, the suit also addresses the family villa located at Bijawasan in Kapashera, Delhi. According to the will, this property was bequeathed to Aashiana Trust, with Anastasia and her mother as trustees. The plaintiffs are concerned that other family members might sell the shares to Vikramjit and Arjun at a price they determine, which they argue would undermine the will’s intent.
Arguments and Counterarguments
Counsel representing Vikramjit and Arjun Oberoi opposed the plea, arguing that the suit is not maintainable. They contended that shares can only be transferred to blood relatives and not to a trust as specified in PRS Oberoi’s will. The court’s interim order clarified that Rajaraman Shankar, COO of Oberoi Hotel Groups, could only exercise voting rights to ensure statutory compliance and filing of statutory reports.
