NCLT Kochi Bench dismissed an application seeking redemption of ₹2.5 crore matured preference shares in Jatayupara Tourism Private Limited.
The Tribunal ruled redemption is barred under Section 55 of Companies Act 2013 as the company has no distributable profits.
Funds in a ₹27 crore common escrow account were deemed unavailable for redemption as they are not company profits.
The applicant, a director and investor, argued financial hardship but was directed to pursue remedies under Section 55.