Arya Iron and Steel Co Pvt. Ltd. Vs Ravikumar Arya (NCLAT Delhi)
NCLAT Delhi held that remote access to ERP to directors being engaged in competing business cannot be denied unless there is tangible evidence of misuse of company information by such directors. Accordingly, appeal stand disposed.
Facts- The company is a private limited entity with a largest shareholder being Palm View Overseas Ltd (PVOL), which holds 49% of the shares and whereas Ravi Arya Group and Pawan Arya group, both rivals, each hold 5% shares. It is argued despite knowing the RespondentNo.2 has floated a rival company namely M/s Nachiketa Power & Steel Pvt Ltd and having poached several key employees of the appellant company, the Ld. NCLT has granted the Respondent an ERP access, including confidential business data, pricing, ventures and client details, as are stored in the company’s ERP system. It is alleged Ravi Arya group no longer holds any board position having been disqualified under the Companies Act and there being no ERP access available to any of the directors.
By the present Appeals, the Appellants are interalia seeking to set aside the Impugned Order dated July 1, 2025, passed in Company Petition, filed by “Ravi Arya Group” i.e., Respondent Nos. 1 to 5. It is alleged the impugned order, amongst other things, a) wrongly directs ERP access to Ravi Arya Group; (b) treats the company as quasi partnership despite absence of any such agreement; and (c) orders a forensic audit of the company based on selective appreciation of facts.
