EIH dispute: Oberoi Hotels told to deposit late chief's dividend with Delhi HC in four weeks

NEW DELHI: In a legal dispute over the control of the family's substantial holdings in EIH Ltd, which manages the Oberoi and Trident hotel chains, the Delhi High Court has directed Oberoi Hotels to deposit its dividend payable to late PRS Oberoi in the court within four weeks as the company cannot retain it while the suit was pending.

"The same shall be kept in an interest-bearing FDR, subject to further orders," Justice Sachin Datta said, while ensuring that this unpaid dividend "is preserved, and does not diminish in value during the pendency of the suit."

Anastasia Oberoi, daughter of late hotelier PRS Oberoi and Mirjana Jojic Oberoi, had sought to restrain Oberoi Hotels from distributing the final dividend declared in its annual general meeting (AGM) held on September 26 last year, or alternatively sought a direction that the dividend so declared be placed in a separate interest-bearing account in the registry of the HC.


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Anastasia's counsel also sought protection over dividend payments on shares owned by her father which are allegedly bequeathed equally to her and her stepsister Natasha Devi Oberoi. She had sought equal distribution of any dividend payable towards the shares of her father, including ?3.43 crore to her and Natasha.

The court noted that the dividend referable to the shareholding standing in the name of the testator had not been paid out to any party and was presently lying in the unpaid dividend account of Oberoi Hotels, which is a non-interest-bearing account. Natasha supported Anastasia's plea by submitting that the value of the dividend so parked is diminishing over time.

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"In these circumstances, let Oberoi Hotels deposit the concerned dividend in this court within a period of four weeks," Justice Datta said.

The court is deciding the entitlement to the said shareholding and consequently to the dividend declared thereon.

The order noted that the dividend in respect of the testator's shareholding shall accrue either to Anastasia and Natasha, or alternatively to her stepsibling Vikramjit Oberoi, and cousin Arjun Oberoi, depending on the outcome of the suit. In any event, the said dividend cannot be retained by the company, the court order stated, while posting the matter for further hearing on February 9.