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2 January 2025

A Tale Of Two Wills: A Legal Quagmire

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The ongoing legal dispute within the Kalyani family revolves around the estate of their late mother, Ms. Sulochana Kalyani, and two conflicting Wills. Her assets are divided among her three children...
India Family and Matrimonial

1. THE KALYANI FAMILY FEUD*

The ongoing legal dispute within the Kalyani family revolves around the estate of their late mother, Ms. Sulochana Kalyani, and two conflicting Wills. Her assets are divided among her three children, Mr. Baba Kalyani, Mr. Gaurishankar Kalyani, and Ms. Sugandha Hiremath.

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The first Will, allegedly executed in January 2012, divides her assets among her three children: Mr. Baba Kalyani, Mr. Gaurishankar Kalyani, and Ms. Sugandha Hiremath. This Will benefits Baba the most, giving him substantial holdings in the Kalyani Group of companies, including Bharat Forge, and significant real estate assets. The remaining assets, such as jewellery and other properties, are allocated to Mr. Gaurishankar and Ms. Sugandha.

However, Mr. Gaurishankar has contested the validity of this Will, claiming it was executed under undue influence from Mr. Baba, who allegedly pressured their mother into signing it. Mr. Gaurishankar has argued that the 2012 Will does not reflect their mother's true intentions and accuses him of manipulating her to secure an unfairly large portion of the estate.

Additionally, to further complicate matters, Mr. Gaurishankar has brought forward a second Will, that he seeks to probate, which was executed in December 2022. The said Will allegedly benefits him as the sole beneficiary and overrides the earlier 2012 Will. Mr. Baba Kalyani has opposed this Will, asserting that the 2012 Will should stand, as it was executed when Ms. Sulochana was in a more stable mental and physical condition.

Furthermore, a month after their mother passed away, Ms. Sugandha Hiremath, Baba's sister and director at Hikal Ltd, and her husband, Mr. Jaidev Hiremath, who is Hikal's founder and executive chairman, sought specific performance of obligations from Kalyani following a family arrangement between him and his parents.

In March 2024, the children of Sugandha Hiremath, Mr. Sameer Jai Hiremath and his sister Ms. Pallavi Anish Swadi, have moved to district court in Pune seeking partition of Kalyani family assets to get 1/9thof the share. In a joint application, they have sought their share in the properties, which includes but is not limited to the shares of several listed companies and unlisted limited companies of the Kalyani Group. Claiming that they had a share in Kalyani Hindu Undivided Family (HUF) assets, they alleged that Baba Kalyani had been "enjoying and using the assets alone and withholding information about the assets in the HUF."1 Besides Mr. Baba, his son Amit, brother Gaurishankar, niece Sheetal, nephew Viraj have also been made parties to the dispute. The petitioners have also sued their mother.

In December 2024, the dispute got further complicated when Ms. Sugandha Hiremath, challenged the validity of both the 2012 and 2022 Wills. She argues that both Wills were obtained under coercion and undue influence from her brothers. She claims that the 2012 Will, which favors Baba, was signed when their mother was emotionally and financially dependent on him, and the 2022 Will, which favors Gaurishankar, was signed when their mother was under his care. Ms. Sugandha has contended that both the Wills are "diametrically opposite2" and should not be accepted, asserting that the estate should instead be distributed under intestate succession, with each child receiving an equal share.

She has also disputed the inclusion of several assets in the Wills, arguing that they belong to the Kalyani Hindu Undivided Family (HUF) and cannot be bequeathed by Will. These assets include shares in Kalyani Group companies, precious jewellery, fixed deposits, and immovable properties in Maharashtra, including the family home, Parvati Niwas in Pune, and land in hill stations like Panchgani and Mahabaleshwar.

The Kalyani family's total assets include significant holdings in companies like Bharat Forge and Hikal Ltd. Baba Kalyani, who had resigned as a non-executive director at Hikal, has been at the centre of the dispute, with his position at the company raising concerns about the impact of the ongoing family tensions on its governance.

2. ROHIT BAL'S WILL CONTROVERSY*

Mr. Rohit Bal, the celebrated fashion designer hailed by TIME magazine as "India's Master of Fabric and Fantasy", and the founder of Rohit Bal Designs Pvt. Ltd., passed away on November 1st after a prolonged illness attributed to his history of heart problems. Following his death, a legal dispute over his inheritance has arisen between his close friend, Mr. Lalit Tehlan, and his family members, particularly his brother, Mr. Rajiv Bal.

Mr. Lalit Tehlan has claimed possession of a Will that bequeaths a significant portion of Rohit Bal's assets to him. These assets allegedly include Bal's controlling stake in Rohit Bal Designs Pvt. Ltd., personal properties such as his residence in Defence Colony, a factory in Noida, valuable land holdings, artworks, and financial assets like bank accounts and fixed deposits. According to Tehlan, the late designer owned 99% of the company's shares, while the remaining 1% was held by his brother, Mr. Rajiv Bal, to fulfill the requirement of having two directors.

On the other hand, Mr. Rajiv Bal has stated that the family possesses a separate Will and questioned the validity of the document presented by Mr. Tehlan. He has declined to comment further until Mr. Tehlan's Will is officially presented.

Mr. Tehlan has asserted that his Will is authentic, drafted by late Mr. Rohit Bal in sound mental health and signed in the presence of witnesses and a photographer. One witness also reportedly confirmed meticulous attention to detail during the drafting process. However, Mr. Gurmukh Choudhri, Mr. Tehlan's lawyer, acknowledged that while the document appears valid, he has yet to review the photographic evidence of the signing.

Mr. Sunil Sethi, Chairman of the Fashion Design Council of India, has been named as the executor of Tehlan's Will. Sethi has stated that he will ensure due process is followed and that Bal's legacy is honored.

If a dispute arises over competing wills, the court will first evaluate their authenticity. Pending resolution, the court may appoint a receiver to oversee the interim management of Rohit Bal Designs Pvt. Ltd. In the event that both the Wills meet the requirements of a valid Will and are deemed to be lawful by the court, the Will with the later date will prevail in determining the successor.

3. THE OBEROI FAMILY FEUD*

The Oberoi business empire, founded by late Mr. Rai Bahadur Mohan Singh Oberoi and renowned for its legacy in luxury and hospitality, is now at the heart of a contentious legal battle that could reshape its legacy. At the center of the dispute is Ms. Anastasia Oberoi, the youngest daughter of the late Mr. Prithvi Raj Singh Oberoi, who has challenged her stepsiblings, Mr. Vikramjit Singh Oberoi and Ms. Natasha Oberoi, and cousin, Mr. Arjun Singh Oberoi, over the inheritance of the family's vast assets.

The conflict revolves around two competing Wills – one dated March 20th, 1992, allegedly favoring the step-siblings, and another dated October 25th 2021, supplemented by a codicil dated August 27th 2022, which Ms. Anastasia asserts reflects her father's final wishes. The dispute has raised allegations of obstruction, questions about the validity of unregistered documents, and competing claims over the ownership of shares in key family entities, including Oberoi Hotels and Oberoi Properties.

PRS Oberoi had two children, Mr. Vikramjit Singh Oberoi and Ms. Natasha Oberoi, from his first marriage and a daughter, Ms. Anastasia Oberoi, from his second marriage to Ms. Marijana Jojic Oberoi, whereas Mr. Tilak Raj Singh Oberoi, PRS Oberoi's brother, has one son, Mr. Arjun Singh Oberoi.

Ms. Anastasia Oberoi has been actively involved in the family business and currently serves as a director in several entities, including Oberoi Hotels Pvt. Ltd., Oberoi Holdings Pvt. Ltd., Oberoi Properties Pvt. Ltd., Oberoi Buildings & Investments Pvt. Ltd., and Oberoi Investments Pvt. Ltd. which demonstrate her significant engagement in the group's operations across industries such as hospitality, real estate, and construction.

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The legal dispute begun following PRS Oberoi's death, with Anastasia presenting the 2021 Will and codicil in court, alleging that her family members have obstructed its execution. According to her, the Will entitles her to a substantial share of the assets, including shares in flagship companies. On the other hand, the step-siblings, Vikramjit, Natasha, and Arjun argue that the 1992 Will should prevail, asserting that it aligns with the original intentions of their late grandfather, Mr. Mohan Singh Oberoi. They further claim that shares in Oberoi Hotels and Oberoi Properties were held in trust for Mr. Vikramjit and Mr. Arjun as per the 1992 Will.

On September 12th, 2024, the Delhi High Court issued an interim order favoring Ms. Anastasia Oberoi and the other plaintiffs in the case. The hon'ble High Court observed that the plaintiffs had established a strong prima facie case and that the balance of convenience lay in their favor. It further held that there was a risk of irreparable harm to the plaintiffs if the estate, including shares and properties, was transferred before the resolution of the dispute.

The hon'ble High Court directed that no shares in the disputed companies should be transferred during the pendency of the suit, except for Class-A shares in each company, which was to be handed over to Mr. Rajaraman Shankar, one of the executors named in the 2021 will. The court also protected Ms. Anastasia and her mother's right to reside in the family home in Kapashera, Delhi, by restraining interference from other family members.

In the ongoing litigation, Anastasia Oberoi has sought several declarations and injunctions from the hon'ble High Court. She has requested recognition of her entitlement to 1,68,281 shares in EIH Ltd., held by her father, Mr. PRS Oberoi, under the 2021 Will. She has also sought a mandatory injunction to restrain the transfer of these shares from her father's demat account.

Further, she has sought a declaration of her rights to hold and enjoy Class A and Class B shares in Oberoi Hotels, Oberoi Properties, and Aravali Polymers LLP, as provided in the 2021 will and its codicil. Anastasia has also requested a decree prohibiting the transfer of shares in Oberoi Hotels and Oberoi Properties to any party other than the legatees named in the 2021 will and codicil. Additionally, she has asked for the transfer of share certificates for these shares into her possession.

Anastasia has also sought ownership rights over Villa Aashiana in Kapashera, Delhi, asserting that the property should be vested in her and her mother as trustees of the Aashiana Trust. She has further claimed a 50% share in any newly discovered assets belonging to PRS Oberoi and has requested a full disclosure of all assets, including land situated in Kanha, Madhya Pradesh.

4. KEY TAKEAWAYS

The following key takeaways reflect the lessons learned from the aforementioned cases, emphasizing the importance of proper drafting, execution and registration of a Will to ensure it reflects the true wishes of the Testator, does not cause confusion and withstands legal scrutiny –

  • Testator's Mental Soundness: One of the quintessential principles governing the law of Wills is that the Testator making the Will should be of sound mind and legally capable of dealing with his/ her assets. In this case, the Court highlighted the absence of attestation regarding the Testator's medical certificate as a significant factor for invalidating the alleged Will. Therefore, it is advisable that a doctor's certificate/ medical fitness certificate should be attached certifying that the Testator is physically and mentally fit, of sound mind, mentally competent and can take his/ her own independent decisions for making his/her Will to prove his/her mental soundness while making the Will.
  • Witnesses and Attestation: The Will must be signed in the presence of at least 2 independent witnesses, being adults and such independent witnesses should sign only when the Testator has signed the Will. In the present case, as well, the Court had made an observation regarding the witness knowing the contents of the Will and his signatures preceding the Testator's. It is also important that the witnesses should be reliable, trustworthy and be able to vouch for the authenticity of the entire proceedings
  • Appointment of Executors: It is advisable that the Executor should be ideally a trusted confidante and advisor to the family. It is also recommended that the Testator should, at the time of making the Will, apprise the Executor(s) of their duties and responsibilities. One of the most important points of emphasis in the Rohit Bal case is regarding the appointment of Executor who was unaware of such appointment until Mr. Bal's death.

It is also advisable that the Executors appointed should be such persons who are likely to survive the Testator. Further, the Executor can be the beneficiary, however, it should be clearly stated and declared that the bequests given in the Will to the Executor(s) have been given by the Testator out of natural love and affection for them and not in consideration of their acting as Executor(s) of the Will.

  • Registration of the Will: Both the Oberoi and Kalyani family disputes reveal the potential complications that arise from relying on an unregistered Will. While registration of a Will is not mandatory in India, unregistered wills can be more susceptible to challenges regarding their authenticity. Registering a Will not only ensures that the Will is executed in the correct manner but also ensures that the Will is not tampered with, destroyed, mutilated, or stolen and is kept in the safe custody of the Registrar. In the case of the Oberoi family, the unregistered 2021 will became a point of contention, with some family members questioning its validity. To avoid such issues, it may be prudent to consider registering a will, particularly when the estate is complex or involves significant assets.
  • Legal Heirs Certificate: It is also imperative for the legal heirs of the Testator to obtain a Legal Heirs Certificate/ Surviving Members Certificate, to ensure smooth and efficient distribution of all the assets of the Testator.
  • Clear and Unambiguous Wills: The disputes in above families highlight the critical need for clear, unambiguous, and comprehensive wills. Conflicts can arise when Wills are not clearly worded, allowing for multiple interpretations. To prevent disputes over inheritance, it is crucial that a Will unequivocally revokes any prior Wills and provides a detailed distribution of assets, leaving no room for confusion. Any ambiguity can lead to conflicting claims among heirs and cause legal battles that might drag on for years.
  • Regular Updates and Proper Revocation of Previous Wills: A key lesson to be learnt from these disputes is the importance of regularly updating a will to reflect changes in family structure, assets, and personal circumstances. For example, in the Oberoi family case, the existence of multiple wills (1992, 2021, and a codicil in 2022) led to a battle over which Will truly reflected the deceased's final wishes. A new Will should specifically ad unequivnocally revoke all prior wills to avoid confusion. Failing to do so can create a situation where multiple documents, each with different instructions, are open to interpretation, resulting in costly and time-consuming litigation.
  • Professional Drafting: Will should be drafted in a manner to ensure that there are no discrepancies in the Will. It is advisable that the Will should be drafted by professionals to ensure that there are no administrative/drafting errors.
  • Safeguarding the Will - The Oberoi, Rohit Bal, and Kalyani family disputes illustrate the risks associated with improper storage and execution of a Will. In each case, the failure to ensure proper storage of the Will, or the obstruction of its execution, led to legal challenges. A Will should be stored securely, such as with a lawyer, a bank, or court, to ensure that it is accessible when needed and cannot be easily tampered with or lost.

To mitigate disputes over inheritance, individuals must adopt sound succession planning practices. A will should be clear and unambiguous in its language, explicitly revoking all prior testamentary documents to eliminate conflicting interpretations. Given the sensitivity and complexity of Will-related matters, it is advisable to consider seeking the advice of legal professionals, who can assist with the requirements of a valid Will and thereby avoid errors that can invalidate a Will.

* The facts presented in this case study are derived from secondary sources, inter alia including news articles, and are intended to provide an objective account of the events, without reflecting the personal opinions of the authors.

Footnotes

1. Baba Kalyani's relatives move court, seek share in HUF assets, The Hindu Bureau, March 26, 2024

URL - https://www.thehindu.com/business/baba-kalyanis-relatives-move-court-seek-share-in-huf-assets/article67995022.ece

2.Kalyani Family Dispute: Sugandha Hiremath challenges late mother's wills in court, Economic Times, Dec 11, 2024

https://economictimes.indiatimes.com/industry/indl-goods/svs/engineering/kalyani-family-dispute-sugandha-hiremath-challenges-late-mothers-wills-in-court/articleshow/116203830.cms?from=mdr

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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