In Brief
A woman who held 98% of shares in a private company claimed she was fraudulently stripped of her shareholding through a gift deed and forged board resolutions. The Supreme Court ruled that the NCLT has jurisdiction to decide whether a disputed gift deed is valid when allegations of fraud and coercion are integral to oppression and mismanagement claims. The Court found the gift deed violated the company's Articles (restricting transfers to mother-in-law) and lacked validity. It also found the board meetings conducting the share transfer were held in violation of statutory notice requirements and quorum rules, constituting mala fide oppression. The Court set aside the appellate tribunal's reversal and restored the NCLT's order, reinstating the woman as shareholder and director.
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