Authority: National Company Law Tribunal, Ahmedabad Bench (Court-II)

Order Date: 07/07/2026

Case Overview

The Interlocutory Application (IA No. 14 of 2024) was filed in the ongoing Company Petition No. 114 of 2018. The applicants, Navinchandra Dayalal Vadalia and Nishaben Navinchandra Vadalia (minority shareholders), filed against Prabhat Solvent Extraction Industries Pvt. Ltd. (Respondent No. 1) and eight other respondents, including company directors, a chartered accountant firm (J.A. Sheth and Associates), a company secretary (A N Thakrar and Co.), and the Registrar of Companies, Ahmedabad.

The application was filed under Rule 11 of the NCLT Rules, 2016, read with Sections 241 and 242 of the Companies Act, 2013, alleging oppression and mismanagement. The applicants sought 28 specific reliefs. The principal allegations included that the affairs of the company were being conducted in a manner oppressive and prejudicial to the applicants. The key disputes involved the validity of the 56th Annual General Meeting (AGM) for FY 2022-2023 and the adoption of its financial statements; the appointment and conduct of the auditor (Respondent No. 7); the non-disclosure of financial dues owed to Applicant No. 1 in the company's financial statements since 2021; and the company's reporting and use of certain lands (Madhapar and Taraghadi) in its financial statements, which the applicants claimed were their property and were attached by the Gujarat Sales Tax Department. The applicants also alleged suppression of critical details in financial statements, including documentation related to a probate order, a Bin Averji deed, a Deputy Collector's order, unauthorized agricultural land use, and loan documentation from the Bank of Maharashtra.

Final Outcome

The tribunal dismissed the interlocutory application. The order stated: "In view of the order passed in CP No. 114 of 2018, this IA becomes infructuous." This indicates that the main company petition, which was the foundation for this application, had already been disposed of by the tribunal, rendering any interim relief sought in this application moot and unnecessary.

Topics: Minority Shareholder Dispute, Corporate Governance, NCLT Proceedings