Supreme Court sets aside NCLT and NCLAT orders in a ₹14.66 crore dispute, directing fresh adjudication of share transfer evidence under Section 59 of the Companies Act.
SC Quashes NCLT Order in Share Transfer Case, Mandates Evidence Review
The Supreme Court has set aside parallel orders of the NCLT and NCLAT in a ₹14.66 crore share transfer dispute, directing the tribunal to conduct a fresh examination of documentary and testimonial evidence before adjudicating on rectification of share registers under Section 59 of the Companies Act, 2013.
The dispute involved conflicting claims over share transfers allegedly executed via forged instruments. The NCLT had dismissed the application solely on the basis of a preliminary objection without evaluating bank statements, board resolutions, and expert opinion. The Supreme Court held that such matters require a detailed factual inquiry:
"The NCLT, while exercising its administrative jurisdiction, must not abdicate its duty to assess evidence where competing assertions of title are made."
The ruling reinforces the quasi-judicial role of the NCLT in corporate ownership disputes. Practitioners must now anticipate deeper scrutiny of documentary authenticity, witness testimony, and forensic evidence in rectification petitions, aligning tribunal practice with civil trial standards.
Citations
- Anil Kumar v. M/s Vikas Corporate Services (2026) SCC Online SC