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Supreme Court of India 2020-07-06 allowed

Aruna Oswal vs Pankaj Oswal & Ors

Bench: 2 — <UNKNOWN>, <UNKNOWN>

In Brief

Aruna Oswal sought relief for oppression and mismanagement of a company under sections 241-242 of the Companies Act, 2013, claiming inheritance of 1/4 shareholding to meet the 10% threshold. The Supreme Court set aside NCLT and NCLAT orders, holding that her entitlement was contingent on a pending civil suit for establishing title and inheritance rights. As she was neither a registered shareholder nor holding the requisite 10%, the Court found NCLT lacked jurisdiction. The judgment holds that civil disputes over title to shares must be resolved first; NCLT proceedings may only be revived if the civil suit succeeds and shareholding reaches 10%.

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Company Law Oppression and Mismanagement NCLT Nomination Shareholder Rights Civil Procedure

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