Reproduction:
<script runat="server">
protected void RadGrid1_NeedDataSource(object sender, Telerik.Web.UI.GridNeedDataSourceEventArgs e)
{
(sender as RadGrid).DataSource = Enumerable.Range(1, 10).Select(x => new { Id = x, Name = "Name " + x });
}
</script>
<telerik:RadFormDecorator ID="RadFormDecorator1" runat="server" DecorationZoneID="test" DecoratedControls="All" />
<div id="test">
<telerik:RadGrid ID="RadGrid1" runat="server" OnNeedDataSource="RadGrid1_NeedDataSource" AutoGenerateColumns="true"
EnableHeaderContextMenu="true" FilterType="HeaderContext">
</telerik:RadGrid>
</div>