In a major development in the Peerless-Parasmal Lodha dispute, the National Company Law Appellate Tribunal (NCLAT) has stayed an order of the National Company Law Tribunal (NCLT), which had directed cancellation of 30,000 shares allotted by Peerless General Finance and Investment Company in 1987.
The July 18 order by the NCLT’s Kolkata bench had declared the allotment of shares by the company in favour of the Roys, the promoters, void. This would effectively change the state of affairs that had existed for 30 years and take away control of the present management from the Roy family.
The Roys moved the appellate tribunal against the order, and the appeals came up for hearing on August 5.
The NCLAT , after hearing both parties, fixed the hearing on September 31, and in the meantime directed that the NCLT ruling be suspended and and status quo be maintained with respect to the disputed shares.
Debanjan Mandal, managing partner, Fox & Mandal, representing the Peerless Group companies, said, “Our client’s case is that the litigation was virtually hijacked by Parasmal Lodha who had no locus to file such case. It is difficult to countenance that after having approved the resolutions both at the board and shareholder level, such a challenge could have been launched against allotment of the shares. More so, after having sold the shares, the selling shareholder sought to challenge the same sale.”