Supreme Court-Dispute of inheritance is a Civil Dispute-cannot be decided under Companies Act
The Supreme Court on 6 th July 2020 in the case of Aruna Oswalvs Pankaj Oswal has categorically held that dispute about inheritance of shares is a civil dispute and the same cannot be decided in proceedings under Section 241/ 242 of Companies Act, 2013. The brief facts of the case are that Late Abhey Kumar Oswal held 5,35,3,960 shares in M/s. Oswal Agro Mills Ltd., a listed company. He died on 29.3.2016 in Russia due to heart attack. He is survived by his wife, 2 sons and a married daughter. Before his death on 18.6.2015 Abhey Kumar Oswal filed a nomination according to section 72 of the Act in favour of Mrs.ArunaOswal, his wife which was duly attested by 2 witnesses. In the said nomination, it was explicitly provided that this nomination would supersede any prior nomination or testamentary document made by him. The name of his wife was duly registered as a holder on 16.4.2016 for the shares held by her deceased husband. Pankaj Oswal, the elder son of late Abhay Oswal filed a partition suit in the Civil Courts claiming entitlement to onefourth of the estate of his father including the deceased’s shareholdings. The High Court vide order dated 8.2.2017...
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