Finolex Cables : Orders Received from Supreme Court and NCLAT

NATIONAL COMPANY LAW APPELLATE TRIBUNAL

PRINCIPAL BENCH

NEW DELHI

Company Appeal (AT) No. 64 of 2020
IN THE MATTER OF:
Deepak Kishan Chhabria & Anr.	…Appellants
Versus
Orbit Electricals Pvt. Ltd. & Ors.	…Respondents

Present

For Appellants : Mr. Ramji Srinivasan, Sr. Advocate with Mr. Amit Jajoo, Ms. Vatsala Pant, Ms. Eshna Kumar, Mr. Akshat Singh, Advocates

For Respondents : Mr. Kunal Mehta, Mr. Shikhil Suri, Madhu Suri, Ms. Vidushi Jain, Ms. Vidhi Kapoor, Advocates for R-1

Mr. K. Datta, Sr. Advocate with Mr. Mahesh

Agarwal, Mr. Ankur Saihgal, Ms. Geetika Sharma,

Advocates for R-2

Mr. Sajan Poovayya, Sr. Advocate with Mr. Harsh

Saxena, Advocate for R- 3 & 4

JUDGMENT(Date:13.10.2023)

[Per.: Dr. Alok Srivastava, Member (Technical)]

Company Appeal (AT) No. 64 of 2020

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In the present appeal, filed under Section 421 of the Companies Act, 2013 (in short ''Companies Act''), the Appellants have challenged order dated 31.12.2019 (in short "Impugned Order") passed by National Company Law Tribunal, Mumbai (in short "NCLT") in MA No. 1449/2019 filed in Company Petition No. 47/2016.

1. In the Impugned Order, the Ld. NCLT has disposed of MA No. 1449/2019 holding that the Resolutions approved in the
   Extraordinary General Meeting ("EGM") held on 03.05.2019 were in accordance with law and therefore, no interference is required in the said decisions/resolutions.
2. In short, the facts of the case, as are relevant to this appeal, are that Pralhad P. Chhabria ("PPC") held majority shareholding in
   Orbit Electricals Pvt. Ltd. (Respondent No. 1, "R-1") and he, on account of old age and weak health, decided to create a trust by the name of Pralhad Chhabria Trust for the benefit of the beneficiaries namely Mrs. Aruna Katara (his daughter), Mr. Vijay Chhabria (his nephew), Mr. Deepak Chhabria (his nephew), and Mr. Prakash Chhabria (his son) who were all part of his extended family. On this basis, a Trust Deed was executed on 12.03.2012 whereby PPC, who held majority equity share capital in Orbit Electricals Pvt. Ltd., settled his shareholding in this trust which was to become effective after his death. He also named his daughter Aruna Katara and son Prakash Chhabria and nephew Deepak Chhabria as future Chairpersons of the trust, in that order, and also divided the income and trust fund of the trust to be distributed amongst the beneficiaries in a certain proportion as

stated in clause 11 of the Trust Deed. In addition, he also put in

Company Appeal (AT) No. 64 of 2020

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