HC Halts Transfer Of Shares In PRS Oberoi’s Estate Amid Family Dispute

Veteran hotelier PRS Oberoi’s daughter, Anastasia Oberoi, has filed a lawsuit in the Delhi High Court against her brother Vikramjit Oberoi, sister Natasha Oberoi, and cousin Arjun Oberoi. The dispute centers around the execution of PRS Oberoi’s will and control of the family’s significant holdings in EIH Limited, which manages the Oberoi and Trident hotel chains.

Court’s Interim Order

On September 12, 2024, Justice Navin Chawla of the Delhi High Court issued an interim order favoring Anastasia Oberoi and the other plaintiffs. The order protects the subject matter of the lawsuit, including shares held by PRS Oberoi and the family home. Justice Chawla noted that the plaintiffs demonstrated a prima facie case and that the balance of convenience was in their favor.

Details of the Injunction

The court’s injunction prevents the defendants, including Rajaraman Shankar and Natasha Devi Oberoi (executors of PRS Oberoi’s will), as well as EIH Limited and its associated entities, from transferring or transmitting any shares held by PRS Oberoi. An exception allows Rajaraman Shankar to exercise voting rights only for statutory compliance purposes.

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Legal Arguments and Plaintiffs’ Claims

The plaintiffs sought declarations to confirm their entitlement to specific shares and capital contributions as outlined in PRS Oberoi’s Will and Codicil. They also requested a permanent injunction to prevent the registration of any transfer of shares other than those directed by the Will.

Defendants’ Counterarguments

Counsel for Vikramjit Oberoi and Arjun Oberoi argued that the suit was not maintainable. They contended that, based on an earlier settlement and a 1992 will, the shares were held in trust for the defendants and were to devolve to them upon PRS Oberoi’s death.

Representation in Court

Anastasia Oberoi and the other plaintiffs were represented by Senior Advocates Sandeep Sethi, Arvind Nigam, Arun Kathpalia, and Jayant Mehta, alongside their legal team. The defendants were represented by Senior Advocates Neeraj Kishan Kaul, Amit Sibal, and Rajiv Nayar, among others.

Next Steps in the Legal Process

The interim order will affect the ongoing management and control of the Oberoi family’s assets until the full resolution of the lawsuit. Further legal proceedings will determine the final disposition of the shares and properties in question.

(WITH INPUTS FROM ANI)

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