Bombay High Court Clears Confusion Over Ratan Tata’s Shares Not Mentioned In His Will
Clearing the air over who will get the ‘listed and unlisted’ shares owned by late industrialist Ratan Tata, which were not otherwise distributed in his Will, the Bombay High Court last week clarified that such shares will be distributed ‘equally’ between the Ratan Tata Endowment Foundation and the Ratan Tata Endowment Trust.
Single-judge Justice Manish Pitale disposed of the probate proceedings initiated for deciding the legality of Tata’s original Will made on February 23, 2022 and further altered or modified through four separate Codicils (Will alterations or additions) with the last one being December 22, 2023.
The judge noted that Clause A of paragraph No.13 of the Will directs that the ‘rest and residue’ of the estate of the deceased is to be distributed equally between charity referred to in paragraph No.5 and the beneficiaries listed in paragraph No.8 of the Will.
“It is relevant to note that if the substituted paragraph No.13 as per clause 1 of the fourth Codicil is applied in the context of listed and unlisted shares, paragraph No.8 of the Will already having dealt with the same, would lead to a situation where no listed and unlisted shares of the deceased would be available for the Ratan Tata Endowment Foundation and Ratan Tata Endowment Trust. Considering the effect of clause 1 of the first Codicil, which substituted paragraph No.5 of the Will and the intention and the thrust of the deceased towards making available large part of his estate for charitable purposes to the Ratan Tata Endowment Foundation and Ratan Tata Endowment Trust, the question framed in the present proceedings will have to be answered with this in mind,” the judge said in the order passed on June 16.
Referring to the Indian Succession Act, 1925 and the judgments of the Supreme Court on the issue, the judge said that it is clear that the Codicil while altering or adding to the dispositions under the Will is deemed to be forming part of the Will and the original Will has to be considered with the alterations introduced by the Codicils.
“Since the Codicil will prevail and the Will has to be considered with such alteration/addition made by the Codicil, question A framed in these proceedings is answered by holding that listed and unlisted shares of the deceased not specifically covered elsewhere in the Will form part of the rest and residue of his estate and stand bequeathed to Ratan Tata Endowment Foundation and Ratan Tata Endowment Trust in equal shares absolutely,”Justice Pitale said.
The issue arose after executors of Tata’s Will sought the court’s intervention to ‘interpret’ the some provisions of the original Will and also the four Codicils, especially the last one made on December 22, 2023.
The executors drew the court’s attention, especially to the issue as to who should be getting the listed and unlisted shares held by Tata during his lifetime, which he did not bequeath to any of the beneficiaries in his entire Will. It was pointed out that in clauses 4 and 8 of the Will, the deceased had already bequeathed certain shares defined as ‘financial properties’ to his sisters – Shireen Jejeebhoy and Deanna Jejeebhoy, and a close associate – Mohini Dutta.
The executors contended that since the earlier provisions in the original Will are not expressly deleted or modified, then to whom should the shares not mentioned or covered by the Will, go.
Justice Pitale, however, held that the fourth Codicil only mentions about the listed and unlisted shares not otherwise covered by the original Will. He said that the fourth Codicil, though overrides the earlier provisions of the Will, the same does not apply on other bequests as per the Will.
Accordingly, the bench disposed of the plea.
Appearance:
Senior Advocate Aspi Chinoy along with Advocates Karl Tamboly, Anuj Desai, JN Mistry and Vijaya D Rao instructed by Mulla & Mulla & Craigie Blunt & Caroe appeared for the executors of the will.
Advocates Aditya Mehta, Rohan Dakshini and Shweta Jaydev instructed by Rashmikant and Partners represented Jamsheed Mehli Ponch, another executor.
Advocate Jai Munim instructed by Bachubhai Munim & Co. represented for Ratan Tata Endowment Foundation.
Senior Advocate PJ Pardiwalla along with Advocate Atul Jasnani appeared for Mohini M Dutta.
Case Title: Shireen Jamsetjee Jejeebhoy vs Jamsheed Mehli Poncha (Originating Summon (Lodging) 11394 of 2025)
