NCLT Mumbai Allows Amendment Of Oppression, Mismanagement Plea Against Shajas Developers

The National Company Law Tribunal (NCLT) at Mumbai has allowed an application filed by Moniveda Consultants LLP and shareholder Rajat Jhunjhunwala seeking amendment of their oppression and mismanagement petition against Shajas Developers Pvt Ltd and others.

The tribunal held that developments connected with the allegations already raised in the company petition can be brought on record for effective adjudication of the dispute.

A bench of Judicial Member K.R. Saji Kumar and Technical Member Anil Raj Chellan observed that subsequent developments relevant to the allegations of oppression and mismanagement should ordinarily be permitted to be incorporated in the company petition.

The dispute arises from allegations of oppression and mismanagement concerning Shajas Developers Pvt Ltd and JLS Realty Pvt Ltd.

The petitioners sought to place on record developments that occurred after the filing of the company petition in May 2021. These included allegations relating to the transfer of land owned by JLS Realty, execution of a corporate guarantee of ₹525 crore, assignment of debt to Phoenix ARC and initiation of corporate insolvency proceedings against JLS Realty.

They also sought to place on record allegations regarding the creation of third-party rights over the land and findings emerging from an Economic Offences Wing investigation.

Relying on the National Company Law Appellate Tribunal's ruling in IVRCL Ltd. v. IOT Utkal Energy Services Ltd., the NCLT held that developments connected with allegations already forming part of an oppression and mismanagement petition may be brought before the tribunal through amendment.

“We hold that no prejudice would be caused to the Respondents in allowing the proposed amendments at present. A close examination of the proposed amendments does not appear to alter the cause of action in the Company Petition but would only aid this Tribunal in the proper determination of the disputes and adjudication of the cause of action. Hence, we do allow the Applicants to carry out the amendments to the Company Petition.”, it observed. 

The tribunal further held that the proposed amendments did not appear to alter the cause of action in the company petition. It observed that the amendments would assist in the proper determination of the disputes and adjudication of the cause of action.

The tribunal also observed that questions relating to limitation involved issues that would be considered at the final hearing.

Holding that no prejudice would be caused to the respondents, the tribunal allowed the amendments. It directed completion of pleadings and listed the main company petition for final hearing on June 24, 2026.