NCLT Kochi Allows Legal Heirs' Impleadment In Oppression Case As Applicant Was Unaware Of Death At Filing

The Kochi Bench of the National Company Law Tribunal has allowed the legal heirs of a deceased individual named in a company petition to be brought on record. The Tribunal accepted the applicant's claim that he was unaware of the individual's death when the case was filed, observing that “procedural technicalities ought not to be permitted to defeat the ends of justice.”

Judicial Member Vinay Goel passed the order while allowing an impleadment application in a company petition concerning Sea Blue Shipyard Limited.

The applicant sought to bring on record three additional parties. They are the legal heirs of Vypukaran Abubakar Jamal, one of the individuals originally named in the company petition, who died on July 12, 2024.

The company petition alleging oppression and management had been signed on July 11, 2024. It was e-filed on July 15, 2024. The applicant stated that he had no knowledge of Jamal's death at the time of filing.

The applicant argued that the legal heirs were necessary and proper parties to the proceedings. It was also submitted that an earlier impleadment application had been dismissed with liberty to file a fresh application in accordance with law.

Sea Blue Shipyard Limited and another contesting party opposed the plea. They argued that proceedings initiated against a deceased person were a nullity in law and that the impleadment application was not maintainable.

After hearing both sides, the tribunal noted that there was no dispute regarding the date of death. It accepted the applicant's statement that he was unaware of the death when the petition was filed.

The tribunal relied on the Supreme Court's ruling in Pankajbhai Rameshbhai Zalavadia vs Jethabhai Kalabhai Zalavadia (Deceased) through LRs & Ors.

The judgment held that a litigant “cannot be non-suited merely because of his ignorance” of the death if the person had died before institution of proceedings and the legal heirs are necessary parties.

Relying on that judgment, the Tribunal held, “an application for impleadment under Rule 11 is maintainable and can be treated as akin to an application under Order I Rule 10 of the Code of Civil Procedure, 1908.”

“Accordingly, this Tribunal finds no legal impediment in granting the relief sought by the applicant,” it added.

The Tribunal accordingly brought the legal heirs on record as additional parties.

It also directed the applicant to amend the company petition records. The applicant must mention in the cause title that Jamal died on July 12, 2024. The amended petition must be uploaded without making any other changes to the pleadings.