Salma Moosa Vs Akarappu Om Yeshwanth (NCLAT Delhi)
Summary: The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, considered two connected company appeals filed under Section 421 of the Companies Act, 2013. Company Appeal (AT) No. 55 of 2026 challenged the NCLT, Kolkata Bench, Court III order dated 12.12.2025 in Transfer Petition No. 26(KB)2025, while Company Appeal (AT) No. 137 of 2026 challenged the subsequent order dated 13.02.2026 in the same transfer petition. The appeals concerned directions for issuance of notices to the Enforcement Directorate (ED) and CBI and for placing tracking information on record.
The Tribunal examined the statutory framework governing investigation into a company’s affairs under Section 213 (b) of the Companies Act, 2013. It held that an investigation cannot be ordered merely because an application is received. The Tribunal must satisfy itself that the statutory circumstances contemplated by clauses (i), (ii) and (iii) exist. Those circumstances concern, among other matters, conduct of the company’s business with intent to defraud creditors, members or other persons or for a fraudulent or unlawful purpose; fraud, misfeasance or other misconduct by persons concerned in formation or management; and failure to provide members with information reasonably expected regarding the company’s affairs.
