In a relief to Peerless, NCLAT stays NCLT order

Kolkata: In a significant development in the Peerless – Parasmal Lodha dispute, the National Company Law Appellate Tribunal (NCLAT) has on Sunday passed an order staying the operation of National Company Law Tribunal (NCLT), Kolkata bench order dated July 18, 2022 which had inter alia directed cancellation of 30,000 shares allotted by Peerless General Finance and Investment Company in 1987.

The NCLT, Kolkata Bench's order had effectively changed the state of affairs that was existing for the last 30 years and would operate to take away control of the present management of the Company from the Roy family.

By the National Company Law Appellate Tribunal order on Sunday, the appeals filed by Peerless and the Roys has been admitted and the matter has been fixed for final hearing in the month of

September.

The case arises out of a 35 year old matter. Way back in the year 1987, the Board of the Company had unanimously resolved to issue 30,000 equity shares on private placement basis to persons

nominated by the Board

at par.

The resolution was thereafter approved by the shareholders of the Company. Both at the Board of the Company and the meeting of the shareholders of the Company, Parasmal Lodha had approved the

allotment.

He was also a Director of the Company and through one of his controlled entities held substantial shares in the Company