Kolkata: In a move that could favour Rajendra Singh Lodha in his fight against Birla family and allow him continue to be co-chairman of M P Birla flagship Birla Corporation Limited, the Company Law Board (CLB) has extended the deadline for filing his replies on a petition filed by a few shareholders of the company seeking his removal from the board.

Debanjan Mandal, senior Partner of Fox and Mandal, the solicitors of Lodha, said, "The deadline to file replies has been extended by two months to middle of December from October 10."

Mandal further said the petitions will now be heard by CLB in the middle of February 2005 as against the earlier schedule of November 22, 2004.

The extension granted by CLB effectively allows Lodha, who was bequeathed over Rs 5000 crore of assets of M P Birla Group by late Priyamvada Birla who died on July 4 last, to function as co-chairman of the company without any hindrance at least till the final hearing.

Incidentally, a number of shareholders of Birla Corporation, allegedly at the behest of other Birla family members, had filed a petition in September last seeking adjournment of annual general meeting (AGM) of the company that was to be held on September 15.

The petition also sought restriction on Lodha to chair the AGM.

While declining to grant the prayer for adjournment of the AGM, Principal Bench of CLB had, however, imposed a few restrictions like election of directors through poll to be conducted under the chairmanship of a director of the company who had not come up for re-election in the meeting.

The CLB had also ordered that results of the poll should not be announced and all the documents relating to the poll should be sealed and kept in the custody of the company secretary who was to function as an officer of the board for the purpose.

Accordingly, resolutions pertaining to reappointment of three directors - Rajendra Lodha, Pracheta Majumdar and Vikram Swarup were put to poll and results were to be announced in the CLB hearing on November 22.

Now that the hearing has been extended to the middle of February 2005, the three directors would continue till then.

Even after the hearing there appears to be no threat to Lodha so far as continuing as director is concerned as the resolutions that were put to poll is likely to be carried considering the fact that promoters held close to 64 per cent of the equity capital of the company.

Meanwhile, Birla Corporation has reported a net profit of Rs 13.38 crore during the second quarter ended September 2004, compared to a net loss of Rs 8.14 crore in the same quarter of 2003-04.

"The improved performance could be achieved by a substantial improvement in the performance of the company's Cement Division, which contributed almost 90 per cent of the sales of the company," a spokesman of Birla Corporation said.