{"id":478,"date":"2022-04-11T14:17:23","date_gmt":"2022-04-11T14:17:23","guid":{"rendered":"https:\/\/udyogmentor.com\/?p=478"},"modified":"2022-04-11T14:17:23","modified_gmt":"2022-04-11T14:17:23","slug":"nomination-under-companies-act","status":"publish","type":"post","link":"https:\/\/udyogmentor.com\/community\/nomination-under-companies-act\/","title":{"rendered":"Nomination under Companies Act"},"content":{"rendered":"<p style=\"text-align: center;\"><strong>ARUNA OSWAL Vs. PANKAJ OSWAL &amp; ORS<\/strong><\/p>\n<p style=\"text-align: center;\"><strong>Supreme Court<\/strong><\/p>\n<p><strong>Provision:<\/strong><\/p>\n<p>According to <strong>Section 72<\/strong> of the Companies Act, 2013 every holder of securities has a right to nominate any person to whom his securities shall \u201cvest\u201d in the event of his death. <strong>Section 72(3)<\/strong> 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.<\/p>\n<p><strong>Brief Facts of the case:<\/strong><\/p>\n<ul>\n<li>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.<\/li>\n<li>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.<\/li>\n<li>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.<\/li>\n<li>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.<\/li>\n<li>The NCLT dismissed the application. NCLT held son as legal heir was entitled to 1\/4 share of the shares.<\/li>\n<li>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.<\/li>\n<\/ul>\n<p><strong>\u00a0Final Decision:<\/strong><\/p>\n<p>SC set aside the orders of NCLT &amp; 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)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>ARUNA OSWAL Vs. PANKAJ OSWAL &amp; 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 \u201cvest\u201d in the event of his death. Section 72(3) overrides anything contained in any other law in force or any&hellip; <\/p>\n<div class=\"read-more\"><a class=\"more-link\" href=\"https:\/\/udyogmentor.com\/community\/nomination-under-companies-act\/\">Read More <span class=\"screen-reader-text\">Nomination under Companies Act<\/span><\/a><\/div>\n","protected":false},"author":1,"featured_media":479,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29,23],"tags":[],"class_list":["post-478","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-case-law","category-company-law","entry"],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/udyogmentor.com\/community\/wp-json\/wp\/v2\/posts\/478","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/udyogmentor.com\/community\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/udyogmentor.com\/community\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/udyogmentor.com\/community\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/udyogmentor.com\/community\/wp-json\/wp\/v2\/comments?post=478"}],"version-history":[{"count":0,"href":"https:\/\/udyogmentor.com\/community\/wp-json\/wp\/v2\/posts\/478\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/udyogmentor.com\/community\/wp-json\/wp\/v2\/media\/479"}],"wp:attachment":[{"href":"https:\/\/udyogmentor.com\/community\/wp-json\/wp\/v2\/media?parent=478"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/udyogmentor.com\/community\/wp-json\/wp\/v2\/categories?post=478"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/udyogmentor.com\/community\/wp-json\/wp\/v2\/tags?post=478"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}