NCLAT
NCLAT Sets Aside NCLT Order Cancelling 30,000-Share Allotment, 15,626-Share Sale In Peerless General Finance
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently set aside a Kolkata NCLT order that had cancelled the allotment of 30,000 shares made in 1987–88 and the sale of 15,626 shares in Peerless General Finance & Investment Co. Ltd. (PGFI). It held that no case of oppression or mismanagement was made out under Sections 397–398 of the Companies Act, 1956. The appellate tribunal was hearing three connected appeals against a common order dated July 18, 2022 in a long-running...
Non-Compete Clause In Shareholder Agreement Binding On Auction Purchaser: NCLAT New Delhi
On 8 April, the New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) has held that non-compete obligations contained in a shareholder agreement can bind a purchaser of shares even if those obligations are not incorporated into the Articles of Association, particularly where the acquisition takes place through a liquidation auction. The Bench of Judicial Member Justice Yogesh Khanna and Technical Member Ajai Das Mehrotra observed: “If Flovel is allowed to compete with its own...
NCLAT Chennai Holds Share Purchase Rights Forfeited By Delay In Exercising First Option
The National Company Law Appellate Tribunal (NCLAT) at Chennai on 26 February dismissed an appeal by PM Johny challenging an NCLT order that permitted respondents to purchase shares at a higher valuation, holding that the appellant forfeited the right by failing to act at the appropriate stage. A Bench comprising Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain observed: “…the Appellant cannot take an advantage at this stage by carving arguments when the...
NCLAT Dismisses MMTC Appeal Against NSEL's Settlement Scheme With Traders
The National Company Law Appellate Tribunal (NCLAT) at Delhi on Monday rejected a challenge by state-run trading company MMTC Limited to a settlement scheme approved for National Spot Exchange Ltd., holding that the scheme cannot be reopened once it has been upheld in earlier proceedings and affirmed by the Supreme Court.The Mumbai bench of the National Company Law Tribunal had, on November 28, 2025 approved the settlement scheme between NSEL, along with its promoter 63 Moons, and its creditors,...
Share Capital Increase Without Notice To Family Shareholders Amounted To Oppression In Daruka Papers Case: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that increasing the authorised share capital and issuing rights shares without notice to continuing shareholders in a closely-held family company amounted to oppression, after finding that the company proceeded on the assumption that certain shareholders had resigned even though the validity of their resignation itself was disputed. Disposing of the appeal in a dispute concerning J.B. Daruka Papers Ltd, a bench of Judicial...
Special Resolution Under Companies Act Needed Only For Sale Of Undertakings, Not Individual Assets: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi on Monday held that shareholder approval through a special resolution under Section 180(1)(a) of the Companies Act, 2013, is required only when a company sells an "undertaking." The provision does not apply when a company disposes of an individual asset. Section 180 of the Companies Act restricts certain powers of a company's board of directors. It requires prior approval of shareholders through a special resolution when a company...
NCLAT Modifies NCLT Order Dismissing Company Petition for Non-Joinder of Necessary Party, Allows Impleadment
The National Company Law Appellate Tribunal at Chennai recently modified an order of the NCLT which had dismissed a company petition on the ground of non-joinder of a necessary party.The NCLT Amravati had dismissed a company petition filed by two individuals after observing that the principal relief was sought against Al-Sami Food Exports Pvt Ltd, which had not been made a party. Since the matter had reached the stage of arguments, the tribunal declined to permit addition of the party at that...
NCLAT Dismisses Jindal Poly Films' Appeal Challenging Maintainability Of Minority Shareholders' Class Action Suit
The National Company Law Appellate Tribunal (NCLAT) on Thursday dismissed an appeal filed by Jindal Poly Films Limited challenging an order of the National Company Law Tribunal that had allowed a class action petition under Section 245 of the Companies Act, 2013 to proceed against the company. The appeal was heard by a bench comprising Judicial Member Justice Yogesh Khanna and Technical Member Ajai Das Mehrotra, which declined to interfere with the NCLT's findings and...
NCLAT Dismisses Appeal Against Order Allowing Former Promoters To Represent Aquafil Polymers
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently dismissed as infructuous an appeal filed by majority shareholder Dr. Anita Roy against an interim order permitting the former promoters of Aquafil Polymers Company Private Limited to represent the company in pending proceedings. The tribunal held that in view of a subsequent comprehensive order passed in July 2025 appointing an Independent Administrator and directing a forensic audit, no effective relief could now be...
NCLAT Extends Deadline Till February 17 For Byju's Parent To Subscribe To Aakash Rights Issue Second Tranche
The National Company Law Appellate Tribunal (NCLAT) at Chennai on Monday has extended the time by one week for Think and Learn Pvt Ltd, the parent company of Byju's, to subscribe to the second tranche of Aakash Educational Services' rights issue.A coram of Judicial Member Justice N. Seshasayee and Technical Member Jatindranath Swain passed the direction while allowing an extension of one week, by permitting Think and Learn to subscribe to the second tranche of rights shares until February 17,...
Jindal Poly Tells NCLAT Class Action Order Hit Share Price, Seeks Interim Relief
The National Company Law Appellate Tribunal (National Company Law Appellate Tribunal) on Monday part-heard Jindal Poly Films Limited's plea for interim relief in its appeal against the admission of a shareholder class action, after the company told the tribunal that the NCLT order had adversely affected its share price. The tribunal will continue hearing the appeal tomorrow. The appeal arises from an order passed on February 5 admitting a class action filed by three minority shareholders...