Expectation Of Inheritance Does Not Override

In the ongoing dispute between the Oswal family in relation to nomination of the shares of Oswal Agro Mills Limited, the Supreme Court has set aside the order of the National Company Law Appellate Tribunal (NCLAT).

The NCLAT order held that a petition relating to 'oppression and mismanagement' filed by a shareholder, was maintainable on the premise that such shareholder had a legitimate claim to inheriting the shares of the company. It is important to note that under the Indian Companies Act, 2013 (Companies Act), only an individual with at least 10% shareholding in an Indian company can file a petition on the grounds of oppression and mismanagement in the affairs of the said company.