Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Labour Laws
06/09/20264 min read
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Informative
Determination Of Share Title Is Within Civil Court's Domain, Not With NCLT/NCLAT: Telangana High Court
Insolvency & Bankruptcy Code
The Telangana High Court, with Justice Moushumi Bhattacharya and Justice Nagesh Bheemapaka, ruled that disputes over share ownership are under the jurisdiction of Civil Courts, not the NCLT/NCLAT as per Section 430 of the Companies Act, 2013. \r
It stemmed from Cherukuri Ramakrishna's challenge over unpaid share transfers in M/s. Sunbeam Hospitality Private Limited. Despite an arbitration clause in the Share Purchase Agreement, the High Court found the Appellant's claims outside NCLT purview, noting Sections 58 and 59 only apply post-title determination.\r
The Court rebuffed prior objections by Respondents and reinstated the Appellant's case against the lower court's dismissal. This clarified Civil Courts' authority on share ownership disputes precluding NCLT/NCLAT interference, upholding individual rights under corporate law.
