Bombay HC Upholds Removal Of Harsh Kilachand As Executor Of Rajnikant Kilachand's Will Over Estate Distribution Delay

Mumbai, July 23: The Bombay High Court has upheld an order removing Harsh Kilachand as the executor of the will of his late father, industrialist Rajnikant Ambalal Kilachand, holding that he failed to complete the distribution of the family estate even after nearly a decade since probate was granted.

A Bench of Justices Ajey Gadkari and Kamal Khata dismissed Harsh's appeal against a February 18 order of a single judge that had removed him as executor under Section 301 of the Indian Succession Act and appointed retired Allahabad High Court Chief Justice D.B. Bhosale as an independent administrator to complete the distribution of the remaining estate.

Decade-Long Delay Noted

Rajnikant Kilachand, who belonged to one of Mumbai's prominent business families with interests in cotton, oilseeds and industry, died on August 6, 1997. His will named Harsh as executor, entrusting him with collecting assets, settling liabilities and distributing the estate to beneficiaries, including his widow, Ramila, younger son Amrish and Harsh himself. Probate was granted only on October 27, 2016, after prolonged litigation.

Despite that, a substantial part of the estate remained undistributed.

Harsh's advocate, Viraj Parikh, argued that the delay was caused by circumstances beyond his control, including pending criminal proceedings, refusal by third parties to transfer shares, non-cooperation by his late mother, Ramila Kilachand, in handing over dividend warrants and technical issues affecting the transfer of shares.

He contended that much of the estate had already been distributed and that the remaining assets could not be transferred due to factors outside his control.

Court Upholds Removal

The Bench noted that it has been almost 10 years since probate was granted and the distribution of the estate remains incomplete even today. “The fact alone that an estate has remained undistributed for over a decade would, in our view, furnish sufficient grounds for the removal of the executor,” the court said, adding that whatever steps Harsh claimed to have taken were “plainly insufficient, since they have not culminated in the complete distribution of the estate to the beneficiaries”.

The judges further said that despite repeated opportunities granted by the court, Harsh had failed to complete the distribution of the estate.

“The beneficiaries do not trust the executor anymore. In these circumstances, we find no justifiable reason to permit the Appellant to continue as an executor endlessly and thereby deprive the beneficiaries of the benefit under the estate for a disproportionate period of time,” the Bench said while dismissing the appeal.

In the present scenario, the court said, it is “just and equitable” to allow the court-appointed administrator to complete the distribution.

Also Watch:

It rejected Harsh's appeal, noting that the single judge's order directing his removal as executor of the will is “neither arbitrary nor perverse”.

The single judge had removed Harsh as executor following a plea by Kilachand's younger son, Amrish, seeking his removal on allegations of gross misconduct and mismanagement.

To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/