Moniveda Consultants LLP Vs Shajas Developers Private Limited & Ors. (NCLT Mumbai)
The National Company Law Tribunal (NCLT), Mumbai Bench, allowed an application seeking amendment of a company petition filed under Sections 241, 242, 244 and 59 of the Companies Act, 2013, holding that the proposed amendments were connected with the original allegations of oppression and mismanagement and were necessary for effective adjudication of the dispute.
The applicants contended that the amendments were required to place on record subsequent developments that had occurred during the pendency of proceedings before the NCLT, NCLAT and the Supreme Court over approximately five years. According to the applicants, these developments formed part of a continuing course of oppression and mismanagement and included alleged asset stripping, transfer of the subject land, execution of a corporate guarantee, induction of directors, creation of third-party rights, initiation of insolvency proceedings, assignment of debt and investigative developments relating to alleged fraudulent corporate actions.
The respondents opposed the application on grounds including delay, limitation, mala fides, abuse of process, expansion of the scope of the company petition, introduction of new causes of action, and lack of jurisdiction to grant reliefs against third parties. It was argued that the applicants had knowledge of many of the events earlier and that the Supreme Court had only directed expeditious disposal of the company petition without granting liberty to amend pleadings.
