Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Companies Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Companies Act, 2013 (18 of 2013) |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Companies Act, 2013 – ss. 241 and 242 – Respondent no. 1 filed a partition suit claiming entitlement to one-fourth of the estate/ shares of his father – The High Court directed status quo between the parties and the said suit is pending – Thereafter, respondent no. 1 filed Company petition alleging oppression and mismanagement in the affairs of respondent no. 2 company and claimed eligibility to maintain the petition on the ground of being holder of 0.03% shareholding and legitimate expectation to 9.97% shareholding of respondent no. 2 company – The NCLT held the petition maintainable and respondent no. 1 as legal heir was entitled to one-fourth share of the property/shares – NCLAT affirmed the order passed by the NCLT – On appeal, held: The basis of petition is the claim by way of inheritance of one-fourth shareholding so as to constitute 10% of the holding, which right cannot be decided in proceedings u/s. 241/242 of the Act – Respondent no. 1 has to firmly establish his right of inheritance before a civil Court to the extent of the shares he is claiming – The respondent no. 1 had nothing to do with the affairs of the company and he is not a registered owner – The rights in estate/shares, if any, of respondent no. 1 are protected in the civil suit – Respondent no. 1 does not represent the body of shareholders holding a requisite percentage of shares in the company, necessary in order to maintain such a petition – It would not be appropriate given the order passed by the civil Court to treat the shareholding in the name of respondent no. 1 by NCLT before ownership rights are finally decided in the civil suit – Therefore, the proceedings filed before the NCLT regarding oppression and mismanagement u/ss. 241/242 of the Act are directed to be dropped – The impugned orders passed by the NCLT and NCLAT are set aside. |
Judge | Hon'ble Mr. Justice Arun Mishra |
Neutral Citation | 2020 INSC 448 |
Petitioner | Aruna Oswal |
Respondent | Pankaj Oswal & Ors. |
SCR | [2020] 7 S.C.R. 476 |
Judgement Date | 2020-07-06 |
Case Number | 9340 |
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