Shareholder Cannot Maintain Individual Appeal After Failing To Avail Representative Remedy: NCLAT

The National Company Law Appellate Tribunal (NCLAT) has recently held that a shareholder cannot independently challenge a final order in a representative company petition after failing to pursue an opportunity to raise grievances collectively.“The Appellant cannot now claim an independent and continuing right to intervene in the representative company petition and challenge the final order in its individual capacity,” the tribunal observed. It added that the appellant could not repeatedly pursue...

NCLT Cannot Order Share Buyout Without Finding Oppression, Mismanagement: NCLAT New Delhi

On 14 October, the National Company Law Appellate Tribunal (NCLAT), New Delhi held that the National Company Law Tribunal (NCLT) cannot order a share buyout under Section 242(2)(b) of the Companies Act, 2013, without first recording a finding of oppression and mismanagement under Section 241 and satisfying the conditions under Section 242(1). A Bench of Judicial Member Sharad Kumar Sharma with Technical Members Arun Baroka and Indevar Pandey set aside the NCLT Mumbai's order directing a buyout...

Directions In Quashed NCLT Order Cannot Survive Or Be Enforced Independently: NCLAT Delhi

The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT), on 30 September held that once an order of the National Company Law Tribunal (NCLT) is quashed by an appellate forum, the directions contained in the quashed order cannot survive or be enforced independently. A Bench of Judicial Member Sharad Kumar Sharma and Technical Member Indevar Pandey held: “…it is known by common judicial prudence that, once the order is quashed by an appellate forum, it does not exist in the...

NCLAT Dismisses Appeal Against Order Ensuring Compliance With Earlier Directions

The National Company Law Appellate Tribunal (NCLAT) at Delhi has dismissed an appeal against an order directing disclosure of machinery details, holding that the impugned order was intended to ensure compliance with earlier directions that had not been challenged by the appellant.The appeal was filed by director Ashok Kumar Kataria against the July 30, 2026, order of the National Company Law Tribunal (NCLT). The order directed the concerned respondents to confirm the list of machinery owned by...

NCLAT Upholds Waiver Allowing IMPPA Members To Pursue Oppression, Mismanagement Case

The National Company Law Appellate Tribunal (NCLAT) has upheld a waiver allowing members of the Indian Motion Picture Producers Association (IMPPA) to pursue an oppression and mismanagement case against the association, despite IMPPA's objection over the number of members supporting the petition.A bench of Judicial Member Justice Sharad Kumar Sharma, Technical Members Arun Baroka and Indevar Pandey upheld the National Company Law Tribunal (NCLT), Mumbai's decision to grant the waiver. The...

Non-Filing Of Reply Alone Cannot Justify Interim Relief In Oppression, Mismanagement Proceedings: NCLAT

The National Company Law Appellate Tribunal (NCLAT) has recently ruled that mere non-filing of a reply to an interim application cannot, by itself, justify granting interim relief, particularly when the relief affects the rights of the parties and no effective opportunity has been given to respond.“Even if it is presumed that the Appellant has not filed Reply to the proceedings, either of the Company Petition or even to the application, I.A. No. 19/2021, even then the Ld. Tribunal was required...

Commercial Necessity Cannot Override Oppression Claims, NCLAT New Delhi Tells NCLT

On 25 September, the National Company Law Appellate Tribunal (NCLAT) at New Delhi held that a company's claim that a restructuring was commercially necessary or undertaken to address financial exigencies cannot by itself relieve the National Company Law Tribunal (NCLT) of its duty to examine allegations of oppression and mismanagement. A Bench comprising Judicial Member Justice Sharad Kumar Sharma and Technical Members Arun Baroka and Indevar Pandey set aside the Delhi NCLT's order dismissing a...

'One Stage Too Early': NCLAT Sets Aside NCLT Rejection Of HNPCL Merger With GOCL At First Motion Stage

The National Company Law Appellate Tribunal (NCLAT) Chennai has set aside an order of the National Company Law Tribunal (NCLT) Amravati Bench rejecting the first motion application for the proposed merger of Hinduja National Power Corporation Ltd. (HNPCL) with GOCL Corporation Ltd.The appellate tribunal held that the NCLT considered the merger scheme too early. It should not have interfered before the shareholders and creditors took a decision on the scheme.Judicial Member Justice N. Seshasayee...

NCLAT Cuts ₹10 Lakh Cost Imposed For Company's Statutory Defaults To ₹5 Lakhs, Holds It Disproportionate

The National Company Law Appellate Tribunal (NCLAT) at Delhi has cut from ₹10 lakh to ₹5 lakh the cost imposed on a company while restoring its name to the Register of Companies. It held that the higher amount was disproportionate and was not supported by any determination of the actual costs incurred in the appeal or application.The bench of Judicial Member Justice Sharad Kumar Sharma and Technical members Indevar Pandey and Arun Baroka, observed that there was no computation showing how the...

Conversion of IBC Appeal Into Companies Act Appeal Does Not Save Limitation: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently held that an appeal filed under the insolvency law does not provide continuity for limitation when it is transformed into an appeal under the company law.The tribunal was dealing with an appeal initially filed under Section 61 of the Insolvency and Bankruptcy Code (IBC), which provides for appeals against orders in insolvency proceedings. The appellant later sought to convert it into an appeal under Section 421 of the...

NCLAT Delhi Says Counsel's Personal Difficulties Cannot Explain Appellant's 202-Day Refiling Delay

On 18 September, the National Company Law Appellate Tribunal (NCLAT) at New Delhi held that an appellant cannot rely on the personal difficulties of his counsel to explain his own failure to rectify Registry defects and seek condonation of a 202-day delay in refiling an appeal. A Bench of Judicial Member Justice Sharad Kumar Sharma with Technical Members Arun Baroka and Indevar Pandey dismissed an appeal filed by Rajendra Devidas Puranik against the Mumbai Bench of the National Company Law...

Notices To ED, CBI For Investigating Company Affairs Can Be Issued Only After Hearing Parties: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has ruled that an investigation into a company's affairs cannot be initiated merely because an application has been filed. The tribunal must first satisfy itself that the circumstances required under Section 213(b) of the Companies Act exist. It must also give the affected parties a reasonable opportunity to hear.Judicial Member Justice Sharad Kumar Sharma and Technical Members Arun Baroka and Indevar Pandey were dealing with two...