The courtroom battle over the will of Priyamvada Birla cost Rajendra Singh Lodha the audit accounts of South Asian Petrochem Ltd and Dunseri Tea & Industries Ltd of the C K Dhanuka group in view of the multiple and close relationships between the partners of Khaitan & Co, the Birla solicitor firm, and the Dhanukas who promoted the two companies. | |
| Pradip Kumar Khaitan, chairman of South Asian Petrochem Ltd, is one of the executors of the unregistered 1982 mutual wills of Priyamvada and Madhav Prasad Birla. |
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| The wills have been filed for probate in opposition to R S Lodha's probate application on Priyamvada Birla's 1999 will. A highly respected lawyer, P K Khaitan is also senior partner in Khaitan & Co which is acting on behalf of the Birlas against Lodha. |
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| Khaitan and Lodha are fighting each other in Calcutta High Court with different Birla wills. The removal of Lodha as auditor is therefore no surprise, legal sources said. |
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| In addition, P L Agarwala, one of the witnesses in the Priyamvada Birla will of 1999, is a director on the board of Dhunseri Tea & Industries Ltd.. Agarwala is one of the best-known legal brains in Khaitan & Co. The Khaitan-Dhanuka relationship goes beyond the boardroom. Hargrieve, the son of Pradip Khaitan, is married to the daughter of Chandra Kant Dhanuka. |
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| When contacted, C K Dhanuka said the proposal for change of auditor did not come from the audit committees of the two companies but from a shareholder- himself. He said, technically, any shareholder holding more than five per cent shares in a company could propose a resolution. |
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| The resolution would be placed for approval from shareholders at the company's forthcoming annual general meeting. |
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