NCLT Hyderabad Grants Interim Protection To Petitioner After EGM Allotted 2.49 Crore Shares To Respondent, Making Them Majority Shareholder
The NCLT Hyderabad bench of Mr Rajeev Bhardwaj, Member Judicial, and Mr Sanjay Puri, Member Technical, while hearing a petition filed under Section 241 and 242 of the Companies Act, read with Sections 59 and 213 of the Companies Act, granted interim relief to the Petitioner. The Bench, after perusing the record, observed that a prima facie case exists in favour of the Petitioner....
The NCLT Hyderabad bench of Mr Rajeev Bhardwaj, Member Judicial, and Mr Sanjay Puri, Member Technical, while hearing a petition filed under Section 241 and 242 of the Companies Act, read with Sections 59 and 213 of the Companies Act, granted interim relief to the Petitioner.
The Bench, after perusing the record, observed that a prima facie case exists in favour of the Petitioner. The balance of convenience falls on the Petitioner's side. Furthermore, the Petitioner will suffer an irreparable loss and injury if the prayer for interim relief is not granted.
The Petitioner, a 71.79% majority shareholder prior to the impugned allotment, argued that the Extra-Ordinary General Meeting (“EGM”) held on 28.06.2025 was convened without notice. Furthermore, the EGM pushed through related-party loans and guarantees amounting to ₹25.05 crore. At the EGM, a whopping 2,49,95,000 shares were allotted to Respondents No. 5 and 6, thereby reducing the Petitioner's stake from 71.79% to 47.87%. This allotment of shares took control from the Petitioner and gave it to the Respondents.
The Bench, based upon the above observations, refrained the Respondent, i.e., MBG Commodities Pvt Ltd and others, from acting upon the decisions taken in the EGM. Furthermore, the Bench refrained the Respondents No. 5 and 6 from exercising voting rights based on a change of shareholding pattern in light of the EGM.
Case Name: Ashok Kumar Mandhani v. MBG Commodities Pvt Ltd & 7 others
Case Number: IA (CA)/208/2025, IA (CA)/209/2025, IA (CA)/210/2025 and IA (CA)/211/2025 in Company Petition 32/241/HDB/2025
Counsel for the Petitioners: Mr. Krishna Vennelakanti, Mr. Pranay Sohin and Ms. Sriya Dhrithik, Advocates
Counsel for the Respondents: Mr. S. Ravi, Ld. Senior Counsel, O/o. M/s. R.S. Associates for Respondents No.1, 2, 5 & 6; Mr. Rohan, Ld. Counsel for the Respondent No.3. Mr. Pushyam Kiran, Ld. Counsel for the Respondent No.4.
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