Case Details
Case Name: Seshavatharam Puranam vs Garudavega Delivery Services Pvt Ltd & 10 Others
Court/Authority: National Company Law Tribunal (NCLT), Hyderabad Bench - II
Case Number: C.P (Companies Act) No.400/241/HDB/2018 and I.A No.102/2019
Date of Order: 21 May 2026
Period of Violation/Dispute: Events from 2013 to 2017, with petition filed on 06 July 2018
Parties Involved
Petitioner: Seshavatharam Puranam (resident of Alpharetta, Georgia, USA)
Respondents:
1. M/s. Garudavega Delivery Services Pvt. Ltd. (R1 Company)
2. Mr. Venugopal Venkata Sarvaraya Thota (R2)
3. Mr. Rama Satyam Venkata Durvasula (R3)
4. Ms. Lakshmibala Kolachina (R4)
5. Ms. Neelima Gaddamanugu (R5)
6. Mr. Purnachandra Babu Cheekati (R6)
7. Mr. Pantam Venkata Achuta Ravi Mohan (R7)
8. Mr. Gaddamunug Phani Chandra (R8)
9. Mr. Gaddamanugu Bala Surya Siva Sri (R9)
10. Mr. Radhakanth Swayampakula (R10)
11. Registrar of Companies, AP & TG (R11)
Issues / Allegations / Violations
The petitioner alleged oppression and mismanagement under Sections 241 and 242 of the Companies Act, 2013, citing:
1. Illegal Share Transfers: Transfer of 5,300 equity shares from petitioner to respondents 2-6 on 10 January 2014 without consideration and through misrepresentation
2. Unauthorized Share Allotment: Allotment of 90,000 equity shares to respondents 2-6 on 25 September 2014 without offering to existing shareholder (petitioner)
3. Invalid Director Appointments: Appointment of respondents 2-10 as directors through meetings where no notice was served to petitioner
4. Diversion of Funds: Alleged diversion of ₹19,25,500 as personal loans by certain directors
5. Fabricated Documents: Creation of split share certificates and backdated documents
The petitioner claimed these actions diluted his shareholding from 98% to 4.5% and removed him from management control.
Findings & Observations
The Tribunal made the following key findings:
1. Share Transfer Validity: Petitioner admitted executing share transfer forms dated 10 January 2014 transferring shares to respondents 2-6 with specified consideration (R2: ₹4,000, R3: ₹13,000, R4: ₹11,000, R5: ₹19,000, R6: ₹6,000)
2. Timeliness of Petition: Petition filed on 06 July 2018 was barred by limitation as the impugned transactions occurred in 2014 (beyond 3-year limitation period)
3. Management Involvement: Petitioner was CEO of company until 13 January 2014 and continued as Chief Advisor, making it improbable that transactions occurred without his knowledge
4. Documentary Evidence: Statutory filings with Registrar of Companies reflected the share transfers and appointments, available in public domain
5. Lack of Contemporary Protest: No evidence of petitioner raising objections at the time of transactions (2014-2017)
6. Previous Disputes: Parties had prior commercial disputes regarding other entities (Garudavega LLC, Garudabazaar LLC) in USA that were settled in 2015
7. Forensic Audit Request: Insufficient evidence to substantiate allegations of fund diversion or financial mismanagement
The Tribunal applied principles from Shanti Prasad Jain v. Kalinga Tubes Ltd. and Dale & Carrington Investment Pvt. Ltd. v. P.K. Prathapan regarding oppression requiring burdensome, harsh and wrongful conduct involving lack of probity.
Penalties / Settlements / Directions
Final Ruling: Both the main Company Petition (C.P No.400/241/HDB/2018) and the Interlocutory Application (I.A No.102/2019) were dismissed in their entirety.
No penalties, settlements, or directions were imposed on any party as the Tribunal found no evidence of oppression or mismanagement.
Corrective Actions & Future Obligations
No corrective actions or future obligations were ordered since the petition was dismissed. The company's current management structure and shareholding pattern were upheld as valid.
Final Ruling & Enforcement
The NCLT Hyderabad Bench comprising Hon'ble Shri Rajeev Bhardwaj (Member Judicial) and Hon'ble Shri Sanjay Puri (Member Technical) dismissed both the Company Petition and the Interlocutory Application. The order is immediately enforceable, and no further action is required from any party. The current management of Garudavega Delivery Services Pvt. Ltd. continues to operate the company without any restrictions.