Only Central Government Can Order SFIO Probes, Not Company Tribunals: NCLAT

The National Company Law Appellate Tribunal (NCLAT) in Delhi has recently reiterated that company tribunals cannot directly order a Serious Fraud Investigation Office probe, ruling that the power to direct such an investigation rests with the Central Government. A bench of Judicial Member Justice Mohd. Faiz Alam Khan and Technical Member Naresh Salecha relying on its own earlier decision observed, "The procedure for investigation in the affairs of the company has been provided under Section...

MP Sudheer Gupta To Head Joint Parliamentary Committee On Corporate Laws (Amendment) Bill

Lok Sabha Speaker Om Birla on Monday constituted a 31-member Joint Parliamentary Committee to examine the Corporate Laws (Amendment) Bill, 2026, appointing BJP MP Sudheer Gupta as its chairperson. The committee comprises 21 members from Lok Sabha and 10 members from Rajya Sabha.The Bill was introduced in the Lok Sabha by Finance and Corporate Affairs Minister Nirmala Sitharaman on March 23, 2026 and was subsequently referred by the Speaker to the JPC for clause by clause examination, stakeholder...

"Undue Haste": NCLT Hyderabad Stays MBG Commodities EGM To Increase Share Capital Amid Oppression Case

The Hyderabad Bench of the National Company Law Tribunal has stayed an Extraordinary General Meeting proposed by MBG Commodities Pvt Ltd to increase its authorised share capital. The tribunal observed that the company was acting in “undue haste” even as the main oppression and mismanagement petition over its rights issue and capital structure is awaiting orders. A Bench of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri passed the interim order on an application moved by...

NCLT Mumbai Rejects Ex-SNVG Logistics Director's Plea Claiming Forced Share Transfer And Oppression

The Mumbai Bench of the National Company Law Tribunal (NCLT) has dismissed a petition alleging oppression and mismanagement in the affairs of S.N.V.G. Logistics Private Limited, holding that former director and shareholder Sachin Natrajan failed to establish that his exit from the company and transfer of shares were the result of coercion or intimidation. The tribunal observed: “…..the Petitioner had not filed any complaint in relation to purported threat or intimidation alleged to be caused...

Treating Returns Of Allotment Penalty Provision To Exclude Adjudicating Officer's Discretion Unconstitutional: Bombay HC

The Bombay High Court has held that penalties for defective filings relating to the issuance of securities cannot be imposed through a mechanical computation exercise without examining the nature, gravity, and impact of the default. It also called arbitrary the multiplication of penalties based solely on the number of directors on a company's board, while modifying a ₹64 lakh penalty imposed on a Nidhi company and its directors. Justice Somasekhar Sundaresan, hearing a petition by N.S.J.L...

Andhra Pradesh High Court Dismisses BGR Energy Appeal, Rules Solvency Cannot Defeat Winding-Up Petition

The Andhra Pradesh High Court at Amaravati on 7 May held that commercial solvency alone cannot defeat a winding-up petition when the debt is admitted and no bona fide dispute exists. The Court reiterated that the existence of a genuine dispute determines maintainability under Section 433(e) of the Companies Act, 1956. A Division Bench comprising Justices Battu Devanand and Subhendu Samanta dismissed the appeal filed by BGR Energy Systems Ltd. and upheld the Single Judge's order dated 13 April...

NCLT Bengaluru Sanctions Amalgamation Scheme Of Wholly Owned Subsidiaries Into Kirloskar Electric

The Bengaluru Bench of the National Company Law Tribunal (NCLT) on 30 April 2026 sanctioned the amalgamation of Kelbuzz Trading Company Limited, Luxquisite Parkland Private Limited, SLPKG Estate Holdings Private Limited and SKG Terrra Promenade Private Limited with Kirloskar Electric Company Limited under the Companies Act, 2013.Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada allowed the second motion petition filed by the companies and approved the Scheme of...

NCLT Bengaluru Clears First Motion In Jigsaw Academy-Unext Learning Merger

The National Company Law Tribunal (NCLT) at Bengaluru has allowed the first motion application in the proposed amalgamation of Jigsaw Academy Education Private Limited with Unext Learning Private Limited. A bench of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada was dealing with the first motion application filed by the companies in relation to the proposed scheme of amalgamation. The companies stated that their respective boards approved the Scheme of...

NCLAT Dismisses Former Stone Age Director's Appeal Over Removal, Refuses New Arguments At Appellate Stage

The National Company Law Appellate Tribunal (NCLAT) in Delhi has dismissed an appeal by a former Stone Age Pvt Ltd director, holding that it cannot act as a court of first instance to decide her argument that her removal from directorship was illegal because the company's Articles of Association did not require a whole-time director to seek reappointment. “Qua the argument the Article of Association of Respondent No.1 nor the provisions of Companies Act, 1956 contemplate any requirement for a...

NCLT Ahmedabad Approves Kunal Plastics-Ecoplast Amalgamation

The Ahmedabad bench of the National Company Law Tribunal has sanctioned the amalgamation of Kunal Plastics Private Limited with Ecoplast Limited, holding that the proposed merger satisfied the requirements of the Companies Act and was bona fide and in the interest of shareholders and creditors.The order was passed on May 14 by Judicial Member Chitra Hankare and Technical Member Dr Velamur G Venkata Chalapathy. The companies had sought approval for the merger with an appointed date of April 1,...

NCLT Mumbai Orders ICAI Action Against Networth Agrotech Auditor Over Backdated Attestation of Financial Statements

The National Company Law Tribunal (NCLT) at Mumbai has recently directed disciplinary action by the Institute of Chartered Accountants of India against former Networth Agrotech India Ltd statutory auditor Dattatray Maruti Khune. It refused, at this stage, to hold that his irregular attestation of the company's backdated financial statements amounted to fraud warranting his removal and debarment. Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar held that the...

NCLT Ahmedabad Sanctions Cello World, Wim Plast, Cello Consumer Products Merger-Demerger Scheme

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has sanctioned a Composite Scheme of Arrangement involving listed houseware and consumer products maker Cello World Limited, Wim Plast Limited, and Cello Consumer Products Private Limited. The bench of Judicial Member Chitra Hankare and Technical Member Dr V.G. Venkata Chalapathy passed the order on May 14, 2026. The joint second motion petition was filed under Sections 230 to 232 of the Companies Act, seeking approval for a...