Birla Cable Ltd. v. Arvind Kumar Newar and Ors.
Case brief
What is this about?
This judgment clarifies the powers of an Administrator Probate Licit (APL) regarding shares held by a deceased person. The Court held that the APL can register nominees as members, exercise voting rights, and make decisions via majority rule to protect the estate. However, the testamentary court lacks jurisdiction to interfere with internal corporate affairs or lift the corporate veil of independent entities. Control is defined by statutory rights of ownership rather than personal influence, and the APL must follow the corporate hierarchy when managing interests in tiered companies.
What did the court decide?
The order of the learned Single Judge is modified. The APL is permitted to function on basis of majority decisions, register nominees as members, and exercise voting rights to protect the estate, subject to court orders for major transactions or litigation initiation. The direction to interfere with internal corporate affairs is quashed.