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Judgment Date: September 2, 2025
Supreme Court of India held that the National Company Law Tribunal (NCLT) possesses the jurisdiction to adjudicate issues of corporate fraud and coercion when they are incidental to a claim of oppression and mismanagement under Section 241-242 of the Companies Act, 2013 (erstwhile Sections 397/398 of the Companies Act, 1956)
FACT:
Before the National Company Law Tribunal (NCLT), a case of oppression and mismanagement was filed under Sections 397/398 of the Companies Act, 1956 (Now Section 241-242 of the Companies Act,2013), which also covered other complex issues relating to corporate fraud, invalid transfer of shares and legal title/ownership of share, removal of directors etc.
The NCLT using its jurisdiction had issued its verdict on the case in favor of the petitioner by granting specific directions as remedy to the oppression, thereafter the appeal against order of NCLT before National Company Law Appellate Tribunal (NCLAT) was made.
NCLAT set aside the judgment of NCLT and allowed the appeals filed by the respondents on ground that the NCLT did
