High Court of Judicature at Bombay Adjudicates Petition Seeking Removal of Executors for Alleged Misconduct and Conflict of Interest in Administration of Estate. Court Hears Submissions on Allegations of Illegal Occupation and Misappropriation of Bequeathed Property.

Petition seeking removal and discharge of executors/trustees appointed under a will and codicil, and directions for completion of administration and handing over of bequeathed property.

Petitioners seek an order for removal and discharge of respondent Nos.1 and 2 as Executors and Trustees, directions against respondent Nos.3 and 4 to complete administration of the estate and hand over possession of the 3rd to 5th floors of Mercantile House to the petitioners.

Petitioners allege that respondent Nos.1 and 2, as executors, have misconducted themselves, colluded with respondent No.5, illegally occupied portions of the bequeathed property, failed to hand over vacant possession, allowed third parties (Union Bank of India) to occupy premises without authority, and failed to pay lease rent to Bombay Port Trust, thereby violating their duties and creating conflict of interest.

Probate granted on 13th December 2007; executors issued letter of authority on 25th January 2008 and 3rd March 2008; criminal complaints filed by petitioners on 22nd February 2011 and 8th April 2011; amendment to probate and schedule allowed by Addl. Prothonotary & Senior Master on an unspecified date, challenged in Misc. Petition 54/12; suit 1437/12 filed on 17th April 2012; notice of motion 1518/12 in that suit resulted in order dated 25th July 2012 by B.R. Gavai, J. restraining creation of third party rights; appeal 612/12 disposed of with direction to maintain accounts.

Whether respondent Nos.1 and 2 as executors/trustees should be removed and discharged for alleged misconduct, conflict of interest, and maladministration of the estate. Whether directions should be issued to respondent Nos.3 and 4 to complete administration and hand over possession of the bequeathed property to the petitioners. Whether the executors unlawfully permitted respondent No.5 and others to occupy portions of the property bequeathed to the petitioners. Whether the executors failed to pay Bombay Port Trust lease rent from the estate, causing prejudice. Whether the probate and schedule of assets were amended improperly without notice to beneficiaries.

Petitioners argued that respondent Nos.1 and 2 misconducted themselves by colluding with respondent No.5, illegally occupying the property, and allowing Union Bank of India to occupy the first floor without authority. Petitioners argued that executors violated confidence and obtained probate without bona fide intention to administer estate, misappropriated estate by occupying property themselves. Petitioners argued that executors suppressed criminal complaints and obtained ex-parte amendment of probate and schedule of assets without consent of beneficiaries, creating irretrievable conflict of interest. Petitioners argued that court has ample power to remove illegal occupants and executors.

By this petition, petitioners seek an order for removal and discharge of respondent Nos.1 and 2 as Executors and Trustees appointed under the Will dated 25th January 2005 and codicil dated 28th June 2006, directions against respondent Nos.3 and 4 to complete the administration of the estate and properties of the deceased and handing over the bequest to the petitioners by taking charge, custody and control of the 3rd to 5th floor of the building known as Mercantile House and to hand over the same to the petitioners. Respondent Nos.1 to 4 were appointed as Executors under the said Will dated 26th January 2005. Respondent No.5 Mr Ravindra Gokal is the brother of respondent Nos.1 and 2 and claims to be in occupation of 4th floor of the building known as Mercantile House. On demise of the said deceased, respondent No.1 as one of the named Executors in the Will filed a petition (733/07) in this Court interalia praying for probate of the said Will and codicil. It is submitted that respondent Nos.1 and 2 have in breach of their obligation unlawfully occupied part of the property which was bequeathed in favour of the petitioners and have taken wrongful advantage of their position as Executors.

The deceased, Ramanlal Gokal, died on 22nd March 2007 leaving a will dated 25th January 2005 and codicil dated 28th June 2006 appointing respondents 1-4 as executors. Respondent No.1 filed petition (733/07) for probate; petitioners gave consent and probate was granted on 13th December 2007. Executors issued letter of authority to petitioners on 25th January 2008 and 3rd March 2008. Petitioners discovered alleged illegal occupations by respondents of floors 1,3,4,5 and complained. Criminal complaints filed on 22nd February 2011 and 8th April 2011. Respondent No.1 applied for amendment of probate and schedule of assets, granted without notice to beneficiaries, later challenged in Misc. Petition 54/12. Petitioners filed suit 1437/12 on 17th April 2012. Notice of motion 1518/12 resulted in order dated 25th July 2012 by B.R. Gavai, J. restraining third party rights. Appeal 612/12 disposed of with direction to maintain accounts. Present petition filed seeking removal of executors and directions.