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March 2026

Company Law

By Pramod Prabhudesai, Chartered Accountant | Kaushik M. Jhaveri, Company Secretary
Reading Time 6 mins

24. Abhishek Maheshchand Khandelwal vs. Khandelwal Finstock (P.) Ltd.

Before, National Company Law Tribunal,

Ahmedabad Bench

Date of Order: 19th January, 2026

Where legal heirs of the deceased had produced death certificate of their late father and other required documents, the requirements under Section 56 of the Companies Act 2013 (CA 2013) were substantially complied with and, thus, the company was to be directed to transmit shares to the legal heirs of the deceased shareholder without insisting on probate.

FACTS:

  • The appellants were the legal heirs of late M who originally held 25 per cent shares in KFPL. The appellants and R were family members of the Khandelwal Family. Disputes arose among the family members. An arbitrator was appointed to resolve the disputes among four factions of the Khandelwal Family. The arbitrator passed an award which revised the shareholding of the family in KFPL and reduced the shareholding of M to 21 per cent.
  • M died on 13th October, 2020. After the death of M, there was no representation from his faction in the company. Only
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