NCLT Mumbai has granted a waiver of the maintainability objection under Section 244(1)(b), allowing further proceedings in a petition regarding oppression and mismanagement.
NCLT Mumbai Grants Section 244 Waiver
The NCLT Mumbai bench has granted a waiver under Section 244(1)(b) of the Companies Act which allows a petition concerning oppression and mismanagement to proceed, dismissing the objection related to its maintainability.
This decision paves the way for further hearings on the petition which had been challenged on the grounds of insufficient shareholding required for filing. The Tribunal noted that equity requires consideration of grievances that may otherwise remain unaddressed due to technicalities.
“Dismissing the maintainability objection serves the interest of justice for shareholders seeking redress,” noted the NCLT in its ruling.
The implications for practitioners lie in understanding the thresholds of maintainability under corporate law, particularly in cases alleging oppression and mismanagement, as waivers can ensure access to justice in complex disputes.
Citations
- NCLT Mumbai (2026) 3 NCLT 112
