Topic
Bombay High Court upholds Official Liquidator's claim to five paintings in Mafatlal Dyes liquidation, rejecting family claimants' objections and appointing art auction expert.
Failure to exercise due diligence bars amendment under Order VI Rule 17 CPC when parallel NCLT proceedings exist on share transfer legality. It bars using pleading amendments to sidestep ongoing tribunal litigation in family shareholding disputes.
Karnataka High Court holds directors jointly and severally liable for unaccounted bank deposits of ₹66.14 lakh under Section 543 of the Companies Act 1956, emphasizing that failure to explain missing records triggers adverse inference. The ruling underscores directors' fiduciary duty to preserve financial records even after winding up, setting a precedent for stricter accountability in liquidation proceedings.
The Supreme Court ruled that a person can qualify as a deemed member under Sections 397-398 of the Companies Act, 1956, even without formal registration, if their financial contribution and the company’s conduct demonstrate a proprietary interest. This expands access to equitable remedies for investors and stakeholders whose rights are ignored through technical non-registration.
NCLAT rules that shareholders who actively consent to private placements or share sales cannot later challenge the same transactions as oppressive under Sections 397-398 of the Companies Act, 1956. The judgment reinforces estoppel as a bar to oppression claims where parties have knowingly participated in the impugned transactions.