New Delhi, Dec. 3: Rameshwara Jute Mills, a BK Birla group company, has locus standi to file an application seeking the appointment of a chairman to run Birla Corporation following the death of R.S. Lodha, the Company Law Board (CLB) said today.

Rejecting objections raised by the Lodha camp opposing the petition, CLB chairman S. Balasubramanian said Rameshwara Jute Mills (RJM) was entitled to file the application as it was a party to the main petition.

During the last hearing before the CLB on November 5, counsels representing the Lodhas had opposed the relief sought by RJM.

Rameshwara Jute had said that the board of directors of Birla Corporation should not appoint a chairman in place of R.S. Lodha, who had expired.

The counsels had stated that according to the Articles of Association of Birla Corporation, the company authorises the board to appoint a chairman, and no shareholder could seek an injunction.

Moreover, the Lodha camp said RJM did not have any representative capacity to file a suit as its holding in Birla Corporation was only 280 shares, less than .003 per cent of the paid-up capital of the company. The next hearing of the matter is on December 11.