Delhi HC restrains transfer of shares of Oberoi Hotel companies following inheritance dispute

New Delhi: Following an inheritance dispute over the will of hotelier PRS Oberoi, the Delhi High Court has restrained EIH Limited, the flagship company of luxury hotel chain the Oberoi Group, and its holding companies from transferring any shares.

The court passed the interim order on a lawsuit by the late businessman's daughter Anastasia Oberoi and her mother Mirjana Jojic Oberoi against Anastasia's brother Vikramjit Singh Oberoi, sister Natasha Devi Oberoi, cousin Arjun Singh Oberoi and others.

The court also protected the possession and enjoyment of a family home in Kapashera in Delhi by Anastasia and her mother in terms of the will.

In the suit, the mother-daughter duo claimed that Vikramjit and Arjun were obstructing the execution of PRS Oberoi's will dated October 25, 2021.

Under the will, the shares of PRS Oberoi were to be divided between the two daughters -- Natasha and Anastasia-- the latter through a trust whose beneficiary was the plaintiff.

The counsel appearing for Vikramjit and Arjun submitted that there was a "serious challenge" to the existing will, while citing the existence of another will of 1992.

Justice Navin Chawla, in the interim order, opined that the plaintiffs had a "good prima facie case in their favour" and they will suffer a "grave irreparable harm" if the subject matter of the suit, i.e., shares and properties, is alienated during the pendency of the case, before the defendants file their response and the same is considered.

"In my view, the interest of justice and the interest of plaintiffs can be protected by restraining the defendant nos.1 to 3 (Executors and Natasha), and defendant nos.4, 7 and 8 (EIH Ltd, Oberoi Hotels Pvt Ltd and Oberoi Properties Pvt Ltd) from transferring or transmitting any shares in defendant no.4, defendant no. 7, and/or defendant no. 8 held by the Testator (PRS Oberoi)..," said the court in its order passed on September 12.

"The defendant nos.1 to 3 and defendant nos.5 (Vikramjt Singh Oberoi) and 6 (Arjun Singh Oberoi) are also restrained from interfering with the possession and enjoyment of plaintiff no. 1 and plaintiff no. 2 of land and building situated at Khasra no.160/4 located in the Village of Bijwasan, Kapashera, Delhi," it ordered.

Chairman Emeritus of The Oberoi Group, Prithvi Raj Singh Oberoi, died on November 14, 2023 aged 94.

The counsel for Vikramjit and Arjun argued that the 2021 will did not "reflect the correct sentiments and wishes" of the late hotelier and his father.

Their counsel said in terms of a settlement between PRS Oberoi and his father Rai Bahadur MS Oberoi, the shares were held by the former in trust for Vikramjit and Arjun, and to give effect to such an oral understanding, a will was executed in 1992.

They also contended that as per Articles of Association of the companies, there was a restriction on the transfer of the shares to a Trust except before offering the same to the existing shareholders.

The court said at this stage, there was sufficient material on record placed by the plaintiffs to demonstrate the prima facie reliability of the 2021 will and issues would have to be determined once the defendants have filed their response.