In Brief
Mrs. Aruna Oswal's late husband made a valid nomination under section 72 of the Companies Act, 2013, vesting his shareholding (39.88%) in M/s. Oswal Agro Mills Ltd. absolutely in her. Their son, Pankaj Oswal, claimed a quarter share through inheritance and filed a petition alleging oppression and mismanagement, holding only 0.03% shares directly. The Supreme Court held that nomination vests absolute rights in the nominee, excluding legal heirs; Pankaj lacked the mandatory 10% shareholding requirement; and inheritance disputes must be resolved in civil court, not by the NCLT. The Court set aside the NCLT and appellate tribunal orders and allowed the appeal, directing the son to first establish his inheritance rights in the pending civil partition suit.",
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