NCLAT Sets Aside NCLT Order on Peerless Share Allotment

NCLAT allows appeals against NCLT Kolkata's order that cancelled Peerless General Finance's 1988 private placement of 30,000 shares and sale of 15,626 shares.
The appellate tribunal finds no evidence of oppression or mismanagement, noting Lodha group's active participation in board approvals and subsequent share sales.
NCLAT rules that allegations of Section 77 violations were unproven and that Bhagwati Developers cannot benefit from claims they originally consented to.
The original 1991 petition under Sections 397-398 was filed by Chatterjees but continued by Bhagwati Developers after lengthy legal battles over maintainability.