What happens to Ratan Tata's shares not mentioned in his will? Bombay High Court answers

The Bombay High Court recently held that the shares owned by the late industrialist Ratan Tata (both listed and unlisted shares), which were not specifically distributed in his will, would be inherited equally by the Ratan Tata Endowment Foundation and the Ratan Tata Endowment Trust [Shireen Jamsetjee Jejeebhoy and Ors v Jamsheed Mehli Poncha & Ors].The ruling was delivered in probate proceedings meant to determine the legal validity of the late industrialist’s will and its codicils (addendum). Justice Manish Pitale issued the ruling while hearing a probate application filed by the executor of the will. The Court stated that the shares not specifically bequeathed in other sections of the will are part of the residuary estate and must be divided equally between the two charitable organizations established by Tata."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," the Court held..The proceedings arose after the executors of the will sought the Court’s direction on how to interpret certain provisions of Tata’s will dated February 23, 2022. This was later amended by four codicils (addendums to the will that either modify or supplement it). The main question before the Court was what should happen to the shares that weren’t named in the original will but were later included in an amendment made on December 22, 2023..The updated clause in the will, introduced through a codicil dated December 22, 2023, clearly stated that the rest and residue of Ratan Tata’s estate will go to Ratan Tata Endowment Foundation and the Ratan Tata Endowment Trust in equal shares. This included the listed and unlisted shares not otherwise dealt with by the will. However, the executors sought the court's clarification on how to interpret the amendment as earlier clauses in the original will had left certain shares and financial assets to individual beneficiaries.The confusion arose because the original will, through Clauses 4 and 8, had defined and distributed "remaining financial properties,” including shares in various companies, to Tata’s sisters (executors) and a close associate. .Since those clauses were neither expressly deleted or amended, the executors asked the Court whether the unmentioned shares should still go to those individuals under the earlier provisions, or whether the new clause in the fourth codicil (addendum) took precedence. The court ruled that the fourth codicil overrode the earlier clause and clarified that the remaining shares are to be treated as part of the residuary estate, directed to be inherited by the two charitable organisations. The Court also ruled that the new clause replaced only the particular section of the will that dealt with the residuary estate, and not the other clauses. Those remaining provisions, concerning the management of investments, the handling of overseas property and protection of business associates' interests, continue to remain valid..Ratan Tata, who passed away on October 9, 2024, was a leading Indian industrialist and philanthropist. Born on December 28, 1937, he served as chairman of Tata Group and Tata Sons from 1991 to 2012, and again as interim chairman from October 2016 to February 2017. He was awarded the Padma Bhushan in 2000 and the Padma Vibhushan in 2008, India’s third and second-highest civilian honours, respectively..Senior Advocate Aspi Chinoy along with advocates Karl F Tamboly, Anuj Desai, JN Mistry and Vijaya D Rao instructed by Mulla & Mulla & Craigie Blunt & Caroe appeared for the executors of the will.Advocate Aditya Mehta along with advocates Rohan Dakshini and Shweta Jaydev instructed by Rashmikant and Partners represented Jamsheed Mehli Ponch, another executor.Advocate Jai Munim instructed by Bachubhai Munim & Co. appeared for Ratan Tata Endowment Foundation.Senior Counsle PJ Pardiwalla instructed by Atul K. Jasnani appeared for Mohini M Dutta..[Read Order]