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NCLAT dismissed the appeal concerning share division and...

Corporate Partnership Dispute Dismissed: No Evidence of Mismanagement Under Section 241-242, Shareholding Structure Remains Unchanged

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Companies LawJune 6, 2025Case LawsAT

NCLAT dismissed the appeal concerning share division and oppression allegations. The partnership firm was deemed not a recognized member under Companies Act, 2013. After multiple hearing dates and mediation attempts, the tribunal found no substantive evidence supporting mismanagement claims. The parties mutually agreed to share mediation costs equally. The court rejected the petition for share division, determining the claims were unsubstantiated. The appeal was consequently closed without further proceedings, effectively maintaining the existing shareholding structure and rejecting the appellant's contentions regarding corporate oppression.

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