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The National Company Tribunal (NCLT) in a ruling on September 24th put to end of the longest ongoing corporate dispute in the country. The dispute was concerning the Amalgamations Group. Amalgamations Group is a coporate entity in India with a wide range of business ranging from fuel, trading, plantation among many other services. The main cause of the dispute arose after the death of the founder of the Company Anantharamakrishnan in 1964. A shareholder by the name Shankar Sundaram who presently holds 10% of the Company shares filed a case in the National Company Law Tribunal alleging as follows-
He thus submitted that since the firm is closely held, then it amounts to quasi partnership. Further he asked for a seat at the Board of one of the profit making companies and sought permission to sell his stock at the market for a fair price according to current market value. Amalgamations Group however rejected all of his submissions. The Company submitted the following-
The National Company Law Tribunal (NCLT), rejected the submissions made by the petitioner. It found that no mismanagement has taken place in any sense by the Company. The National Company Law Tribunal also held that the circumstances in the present case do not warrant for buyback of shares and hence the petitioner will not be able to sell his 10% shares. The Tribunal further rejected the submission of the petitioner for appointment as member of a Board of a company asserting it is merely a form of shareholders grievance. The Tribunal found no merit in any of the submissions put forth by the petitioner. It finally noted that the order will no way bar any further means of negotiations between the two parties.
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