WILL NOT BE CONTESTED

A no-contest clause - the kind Ratan Tata has put in his will - is designed to discourage beneficiaries from disputing the terms of a will, but inheritance laws in India do not explicitly recognise or prohibit such clauses

- ISHITA AYAN DUTT & BHAVINI MISHRA

The inclusion of a “no-contest” clause in Ratan Tata’s will has caught the attention of India Inc, prompting a wave of interest among promoters of listed companies and business families. Legal advisors and estate planners are seeing a noticeable uptick in queries, as wealthy individuals look for ways to shield their legacies from courtroom battles.

The clause, which disinherits any beneficiary who contests the will, is a common feature in western estate planning but remains largely unfamiliar in India.

Amit A Tungare, managing partner at Mumbai-based law firm Asahi Legal, said the clause is “exceptionally rare” in Indian testamentary practice. “While common in western legal systems, these provisions have seldom appeared in Indian testamentary documents until now,” he said. “After this high-profile case, I've noticed a significant increase in clientsparticularly business owners - enquiring about similar protections.”

Ratan Tata, the doyen of Indian industry and former chairman of the Tata Group, passed away on October 9 last year. His will, currently undergoing probate in the Bombay High Court, lists multiple beneficiaries and includes assets reportedly worth 3,900 crore, among which are shares of Tata Sons. The no-contest clause in the will states that any person who challenges it will lose all rights and benefits under it.

Tungare believes the case could set a precedent for India’s wealthy, who are increasingly exploring wealth preservation strategies that give them greater posthumous control over their legacies.

Legal experts say that such clauses are now being seriously considered, especially as families seek to avoid prolonged succession disputes.