Challenge on illegal Transfer of Shares of Company and on Unauthorised Appointment of Directors: Orissa HC directs to approach NCLT [Read Order]
Since the NCLT is a specialised on Tribunal for dealing with the companies affairs, special issues like operation, mis-management, fraud etc , the authority is well equipped to decide the issue
In a recent case, the Orissa High Court directed the petitioner assessee to approach the National Company Law Tribunal (NCLT) for a challenge on the illegal Transfer of Shares of the Company and on the Unauthorised Appointment of Directors. The court found NCLT as the appropriate forum for the same.
The Petitioner, Harbinder Singh prayed to set-aside the order dated 04.07.2025 passed by the ROC-cum-OL, Odisha/Opposite Party No.1. He further seeks a direction from the Court to the Opposite Party No.1 to cause a de novo inquiry and conduct inspection pursuant to Petitioner's Letter dated 21.11.2024 in respect of illegal transfer of shares and unauthorized appointment and removal of directors. He also seeks a direction from the Court to the Opposite Party No.2 to bring on record and examine documents available with its office in the form of statutory filings and e-forms with MCA by the Opposite Party No.2.
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A single bench of Dr. Justice Sanjeeb K Panigrahi viewed that since the National Company Law Tribunal, Cuttack (NCLT, Cuttack) is a specialised on Tribunal for dealing with the companies affairs, special issues like operation, mis-management, fraud etc and the Petitioner’s case falls under those category, the National Company Law Tribunal, Cuttack is well equipped to decide the issue.
Accordingly, the Petitioner is granted liberty to approach the National Company Law Tribunal, Cuttack within a period of two weeks hence for raising those issues including the present issue.
It was further observed that till the matter is listed before the National Company Law Tribunal, Cuttack, operation of the impugned order dated 04.07.2025 passed by the ROC-cum-OL, Odisha/Opposite Party No.1 and further consequential proceedings shall remain stayed.
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