| ASPECTS | DETAILS |
| Case Title | Chalasani Udaya Shankar and others vs. Lexus Technologies Pvt. Ltd. |
| Introduction | The case states the rectification of shareholding records and allegations of fraud in the management of Lexus Technologies Pvt. Ltd. |
| Factual Background | The appellants claim they purchased shares but were excluded from the company’s shareholder records due to alleged fraud by the company directors and management. |
| Legal Issues |
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| Applicable Law | Section 59, Companies Act, 2013. |
| Analysis | The Supreme Court examined whether the NCLT and NCLAT properly addressed the appellants’ evidence and allegations of fraud, ruling that they had failed to conduct a thorough inquiry. |
| Conclusion | The Supreme Court set aside the previous judgments, reinstating the case for fresh consideration by the NCLT, with a directive to properly evaluate the evidence. |
| Current Scenario | The NCLT has been instructed to prioritize and expedite the case, ensuring that the evidence is appropriately reviewed and resolved promptly. |
CASE SUMMARY – In this case, the Supreme Court examined the rectification of the Register of Members under Section 59 of the Companies Act, 2013. The appellants claimed they had acquired shares in the company, but their names were excluded from the shareholders’ list due to alleged fraud by the respondents. The NCLT and NCLAT dismissed the claims, but the Supreme Court reversed these rulings, directing the NCLT to reconsider the evidence thoroughly. The Court emphasized the need for careful examination of material facts, urging a speedy resolution.
“The rectification of the Register of Members is crucial in resolving shareholding disputes, stressing the need for a comprehensive evaluation of allegations and evidence, under Section 59 of the Companies Act, 2013.”- SUPREME COURT OF INDIA
SOURCE – SUPREME COURT OF INDIA
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