Advanced Liquidation Cannot Be Shifted To NCLT Merely Because Assets Are Unsold: Karnataka High Court

The Karnataka High Court on 23 June, held that winding up proceedings cannot be transferred to the National Company Law Tribunal (NCLT) merely because the company's assets have not yet been sold. It noted that once liquidation has progressed substantially in time and substance, transfer would disrupt a mature liquidation process and is not warranted. Justice Suraj Govindaraj dismissed an application filed under the fifth proviso to Section 434(1)(c) of the Companies Act, 2013 (which empowers...

Asset Transfers To Defeat Creditors During Liquidation Are Void As Fraudulent Preference: Bombay HC

The Bombay High Court on 25 June held that a transfer of company property made during liquidation proceedings to promoters, without valid consideration and without a registered instrument, constitutes a fraudulent preference under Section 531(1) of the Companies Act, 1956, when it operates to defeat creditors' rights. Justice Somasekhar Sundaresan allowed an Official Liquidator's Report, and declared the transfer of agricultural land in favour of the promoters of Indage Vineyard Pvt Ltd void,...

Board Cannot Refuse Valid Requisition For EGM, Cannot Judge Its Legality: NCLT Kochi

The National Company Law Tribunal (NCLT) at Kochi has held that a company's Board of Directors is bound to convene an Extraordinary General Meeting (EGM) once it receives a valid requisition under the Companies Act. The tribunal observed that the Board cannot examine the legality, correctness, or genuineness of such a requisition before acting on it. A bench of Judicial Member Vinay Goel and Technical Member Ravichandran Ramasamy held, “The Board cannot assume the role of a court or Tribunal...

LiveLawBiz Company Law Half-Yearly Digest: January- June, 2026

SUPREME COURTSpecial Court Cannot Hear Private Complaints In Companies Act Fraud Cases; Only SFIO Can File: Supreme CourtThe Supreme Court on Friday held that a special court cannot entertain a private complaint in cases involving fraud under the Companies Act. It ruled that where an offence attracts punishment under the fraud provision, cognisance can be taken only on a complaint filed by the Serious Fraud Investigation Office or an authorised officer of the Central government.Case Title:...

Interrogatories Maintainable In Oppression & Mismanagement Cases Before Company Law Board: Delhi High Court

The Delhi High Court on Wednesday held that interrogatories are maintainable in oppression and mismanagement proceedings before the Company Law Board (now NCLT), observing that such discovery mechanisms help elicit material facts and shorten prolonged trials.A coram of Justice Anish Dayal held that interrogatories cannot be rejected merely on the ground of delay if they are relevant to the issues in dispute and are neither vexatious nor oppressive.Interrogatories are a set of written questions...

LiveLawBiz Company Law Monthly Digest: June 2026

SUPREME COURTValidity Of Vote Cast On Behalf Of Society At Company's AGM Cannot Be Decided By Who Voted First: Supreme CourtThe Supreme Court has recently held that the validity of a vote cast on behalf of a society at a company's annual general meeting cannot be determined merely by who voted first. The Court ruled that voting authority must flow from the society's governing documents and the statutory framework regulating electronic voting.Case Title : HINDUSTAN MEDICAL INSTITUTION vs BIRLA...

NCLT Chennai Defreezes Karti Chidambaram's Salary & Family Accounts, Partly Relaxes SFIO Freezing Order

On June 19, the Chennai Bench of the National Company Law Tribunal (NCLT) ordered the defreezing of Congress MP Karti P. Chidambaram's salary account and the bank accounts of his family members. However, it directed that the freeze on his other personal bank accounts, fixed deposits, and movable assets would continue in connection with an ongoing Serious Fraud Investigation Office (SFIO) probe under Section 212(14A) of the Companies Act, 2013.Judicial Member Jyoti Kumar Tripathi and Technical...

NCLT Chennai Clears First Motion For Refex Industries' Green Mobility Business Restructuring

The National Company Law Tribunal (NCLT) at Chennai has allowed the first motion application filed by Refex Industries Limited (RIL) in relation to a composite scheme of amalgamation and arrangement involving Refex Green Mobility Limited (RGML) and Refex Mobility Limited (RML).RGML and RML are the wholly owned subsidiaries of RIL, whose shares are listed on the Bombay Stock Exchange and National Stock Exchange. A coram of Judicial Member Sanjiv Jain and Technical Member Venkataraman...

NCLT Consent Order Does Not Bar Appeal Against Unconsented Penalty: Kerala High Court

The Kerala High Court on 10 June held that even where an order of the National Company Law Tribunal (NCLT) is recorded as a consent order, a party may still challenge a penal condition before the appellate tribunal if it was not specifically consented to. Justice Harisankar V. Menon disposed of a writ petition filed by Gramox Paper & Boards (P) Ltd and its authorised representative, granting them liberty to challenge an NCLT Kochi Bench order before the National Company Law Appellate...

NCLT Chennai Orders Shareholder, Creditor Meetings For Renault Group Restructuring Scheme

The National Company Law Tribunal (NCLT) at Chennai has allowed a first motion application concerning a proposed restructuring involving three Indian entities of French automobile maker Renault. The proposal envisages the demerger of Renault Nissan Automotive India Private Limited's powertrain business into Renault India Powertrain Private Limited. It also provides for the amalgamation of Renault Nissan Automotive India Private Limited with Renault India Private Limited. The tribunal...

NCLT Chennai Dispenses With Shareholder Meetings In Ford Motor-Ford India Merger

The National Company Law Tribunal (NCLT), Chennai, has permitted the proposed amalgamation of Ford Motor Private Limited with Ford India Private Limited to move to the next stage. While dispensing with meetings of equity shareholders of both companies, it directed meetings of unsecured creditors to consider the scheme. A coram of Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam passed the order on applications filed by the two Ford group entities seeking directions in...

NCLT Chennai Sanctions Merger Of Encore IT Services Solution With Sonata Software

The Chennai Bench of the National Company Law Tribunal (NCLT) on 5 June approved the amalgamation of Encore I.T Services Solution Private Limited with its holding company Sonata Software Limited, holding that the scheme did not prejudice the interests of the companies' members. Judicial Member Jyoti Kumar Tripathi and Technical Member Ravichandran Ramasamy allowed a joint company petition seeking sanction of the Scheme of Amalgamation. It observed: “This Tribunal is of the view that the scheme...