Oberoi Family Feud: Delhi High Court Halts Share Transfers In Feud Over Will

The Delhi High Court has issued a temporary order blocking any transfer of shares in EIH Ltd, Oberoi Hotels, and Oberoi Properties that were owned by the late PRS Oberoi.

Anastasia Oberoi has taken her siblings—Vikramjit, Natasha, and cousin Arjun—to court, accusing them of blocking the execution of their late father's will. The Delhi High Court has stepped in to halt any share transfers in the family's business empire.

This ruling comes in response to a legal battle initiated by his daughter, Anastasia Oberoi, who is challenging her siblings over control of the family's significant stake in EIH Ltd., which oversees the Oberoi and Trident hotel chains.

The case revolves around a will dated Oct. 25, 2021, and a codicil dated Aug 27, 2022. Anastasia Oberoi claimed that this will is to bequeath half of the shares held by her late father in EIH Ltd and Oberoi Hotels to her and the AO Trust, of which she is a trustee and sole beneficiary. Anastasia argued that these shares were indirectly granted to her through the trust.

In opposition, her siblings have contested the validity of the will and have introduced an earlier will dated March 20, 1992. They contend that an oral family settlement, which purportedly establishes a constructive trust in their favor, should override the later will.

The court's order has several key aspects. It prohibits the transfer or transmission of any shares held by the late PRS Oberoi in EIH Ltd, Oberoi Hotels, and Oberoi Properties.

However, it allows the transfer of one Class-A share in each of these companies to a designated party to meet statutory requirements. This share will be used solely to ensure compliance with regulatory obligations, with the holder's voting rights restricted to these purposes and not extended to other general meeting matters.

Additionally, the court has restrained all parties from interfering with Anastasia Oberoi's possession of land and buildings located in Kapashera in Delhi. This measure is intended to preserve the current state of the property while the legal dispute is ongoing.

The court has acknowledged that Anastasia Oberoi has presented a prima facie case supporting the validity of the will and codicil. It determined that the balance of convenience favors her, and any transfer of shares or properties before the case is resolved could cause irreparable harm.

The court's interim order emphasises that its observations are preliminary and should not be interpreted as a final ruling on the case.