NCLT Cuttack Holds Exclusion Of Minority Shareholders Is Oppression, Restores Sparsh Hospital Directors

The Cuttack National Company Law Tribunal (NCLT) on 13 July held that the management of Sparsh Multispeciality Hospital Pvt. Ltd. oppressed minority shareholders by excluding them from the company's affairs and restored their directorships on the board. A Bench comprising Judicial Member Cheekati Radha Krishna and Technical Member Banwari Lal Meena allowed a petition filed under Sections 241 and 242 of the Companies Act, 2013 (provisions that provide relief against oppression and mismanagement...

NCLT Orders Stakeholder Meetings For Kinder Women's Hospital–Kindorama Healthcare Merger

The National Company Law Tribunal (NCLT) at Kochi on Wednesday directed the convening of meetings of the equity shareholders of Kinder Women's Hospital and Fertility Centre Private Limited. It also ordered meetings of the secured and unsecured creditors of both Kinder Women's Hospital and Kindorama Healthcare Private Limited in connection with their proposed merger. A coram of Judicial Member Vinay Goel and Technical Member Ravichandran Ramasamy was considering a first motion application...

NCLT Ahmedabad Holds Removal Of Nominee Director Without Vested Rights Not Oppressive Conduct

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has recently held that the removal of a nominee director from the board, without any vested rights in the company, did not amount to oppressive or prejudicial conduct. The tribunal dismissed connected petitions filed by the director against Security Ops India Pvt. Ltd.A bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma held that the applicant was merely a nominee shareholder appointed by the company's holding...

NCLT Chandigarh Sanctions Banday Ideal Products-Banday Impex Merger

The Chandigarh National Company Law Tribunal (NCLT) has sanctioned a Composite Scheme of Arrangement providing for the merger of Banday Ideal Products Limited with Banday Impex Private Limited. Under the scheme, the transferor company will continue as a brand or division of the transferee company. The appointed date of the scheme is April 1, 2023.The order was passed by Judicial Member Khetrabasi Biswal and Technical Member Kaushalendra Kumar Singh The companies jointly sought approval of...

NCLT Chandigarh Orders Winding Up Of Punjab State Biotech Corporation After Biotech Park Failed

The Chandigarh bench of the National Company Law Tribunal (NCLT) has ordered the winding up of Punjab State Biotech Corporation after finding that it had not carried on any business for many years.The bench of Judicial Member Khetrabasi Biswal and Technical Member Kaushalendra Kumar Singh passed the order on July 8.Punjab State Biotech Corporation was incorporated on January 12, 2011, as a not-for-profit company. It was set up to develop a Biotechnology Park at Knowledge City, Mohali, in...

Minority Shareholders Can Oppress Majority If They Control Company's Management: NCLT Chennai

The National Company Law Tribunal (NCLT) at Chennai has recently observed that the term "oppression" is not determined merely by numerical strength. It held that even a minority shareholder exercising effective managerial control can oppress a majority shareholder by abusing such control.A bench of Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam made the observation while deciding cross-petitions between rival shareholder groups of Silver Line Retreat Hotels Private...

NCLT Ahmedabad Clears First Motion In Orient Cement-Ambuja Cements Merger, Orders Shareholder Meetings

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has directed meetings of the equity shareholders of Orient Cement Ltd. and Ambuja Cements Ltd. to consider their proposed scheme of amalgamation. It dispensed with meetings of the companies' secured and unsecured creditors, as well as their preference shareholders.The order was passed by Judicial Member Shammi Khan and Technical Member Sanjeev Sharma.The application was filed by Orient Cement and Ambuja Cements for the proposed...

NCLT New Delhi Sanctions Amalgamation Of Indo Bevs With 'Brocode' Maker Indospirit Beverages

The New Delhi Bench of the National Company Law Tribunal (NCLT) on 15 July sanctioned the scheme of amalgamation between Indo Bevs Private Limited and Indospirit Beverages Private Limited, the manufacturer of the carbonated wine brand “Brocode”, observing that the Tribunal does not interfere with commercial decisions approved by shareholders and creditors.A Bench comprising Judicial Member Mahendra Khandelwal and Technical Member Anu Jagmohan Singh approved the scheme under Sections 230-232 of...

NCLT Chennai Directs MPS Limited To Convene Meetings For Amalgamation With ADI BPO Services

The Chennai National Company Law Tribunal (NCLT) on 2 July directed MPS Limited to convene meetings of its equity shareholders and unsecured creditors to consider its proposed scheme of amalgamation with wholly-owned subsidiary ADI BPO Services Limited. A Bench of Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam held: “Since the Applicant Company has sought for directions for the meeting of the Unsecured Creditors, this Tribunal orders convening, holding and conducting...

NCLT Delhi Directs Creditor Meetings, Dispenses With Shareholder Meetings In Jakson Limited's Demerger Scheme

The National Company Law Tribunal (NCLT) has dispensed with meetings of the equity shareholders of Jakson Limited and Jakson Infra Projects Limited while directing separate meetings of Jakson Limited's secured and unsecured creditors to consider a proposed scheme for the demerger of the company's businesses into Jakson Infra Projects Limited.A Delhi bench of Judicial Member Jyotsna Sharma and Technical Member Anu Jagmohan Singh passed the order on July 15. Jakson Limited, the demerged company,...

Fresh Cause of Action Cannot Be Introduced Through Amendment To Company Petition: NCLT Kochi

The National Company Law Tribunal at Kochi has held that a fresh and independent cause of action cannot ordinarily be introduced through an amendment to an existing company petition. It observed that permitting such an amendment would defeat the objective of summary proceedings under the Companies Act, 2013 and run contrary to the legislative intent underlying Rule 155 of the National Company Law Tribunal Rules, 2016. A bench of Judicial Member Vinay Goel and Technical Member Ravichandran...

NCLT Mumbai Allows DEXIT Global's ₹203 Crore Preference Share Capital Reduction Under Companies Act

The Mumbai Bench of the National Company Law Tribunal (NCLT) on 9 July approved DEXIT Global Limited's (formerly NSEIT Limited) proposal to reduce its preference share capital under Section 66 of the Companies Act, 2013, holding that the reduction was fair, lawful and not against public interest. A Bench of Judicial Member Ashish Kalia and Technical Member Sanjiv Dutt sanctioned the reduction, allowing the company to cancel preference shares worth up to Rs. 203 crore by returning the...