ARUNA OSWAL Vs. PANKAJ OSWAL & ORS
Supreme Court
Provision:
According to Section 72 of the Companies Act, 2013 every holder of securities has a right to nominate any person to whom his securities shall “vest” in the event of his death. Section 72(3) overrides anything contained in any other law in force or any disposition, whether testamentary or otherwise, where a nomination is validly made in the prescribed manner. Once shares vest in a nominee, he becomes absolute owner of the securities on the strength of nomination.
Brief Facts of the case:
- The case is the outcome of a family issues the appellant is the mother while the respondent is the son, who was holding approx 40% shares in Oswal Agro Mills Limited and approx 11% shares in M/s. Oswal Greentech Limited.
- He filed a nomination in the favour of the appellant, who was registered as a holder as against the shares held by her deceased husband.
- Son filed a partition suit claiming 1/4 share in the shareholdings of his father in the above 2 companies. Further he filed a petition before the NCLT claiming oppression and suppression against his mother and others.
- The appellant challenged the maintainability of the petition, inter alia, under the ground that the son is not holding the required shares to file such petition.
- The NCLT dismissed the application. NCLT held son as legal heir was entitled to 1/4 share of the shares.
- Aggrieved thereby, appeals were filed before NCLAT, which have been dismissed vide the impugned judgment and order. Aggrieved thereby, the appellants are before this Court.
Final Decision:
SC set aside the orders of NCLT & NCLAT. (SC held that up till the civil court has not finalised the partition suit of the family, NCLT/NCLAT cannot presume the final holding of shares which the petitioner might get by the civil court)