Peerless General Finance Investment Co Ltd vs Bhagwati Developers Pvt Ltd

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2026 Supreme(Online)(NCLAT) 450

NATIONAL COMPANY LAW APPELLATE TRIBUNAL
Yogesh Khanna, Member (Judicial)
Peerless General Finance Investment Co Ltd – Appellant
Versus
Bhagwati Developers Pvt Ltd – Respondent

For the Appellants/Petitioners:Mr. Harish Salve, Sr Advocate, Mr. Ratnanko Banerji, Mr. Abhijeet Sinha, Sr Advocates, Ms Arunabha Deb, Ms Ashika Daga, Ms Pallavi Mishra, Mr Soumya Roy Chowdhury, Mr. Sanket Sarawgi, Mr S. Sukumaran, Mr Anand Sukumar, Mr. Harsh Agarwal, Mr Bhikram Sarka, Ms Ruchi Anand, Mr. Arun Kathpalia, Sr Advocate, Mr. Debanjan Mandal, Mr Sanjiv Kumar Trivedi, Mr Kunal Vajani, Mr. Kunal Mimani, Mr Subhang Tandon, Ms Mahima Cholera, Mr Deepayghya Datta, Mr Dev Karan Singh, Mr Debayan Sen, Mr Samar Bansal, Mr Manoranjan Sharma, Mr Deeptanshu Jain, Mr Vijay Nair, Mr. Raghav Dembla, Ms Shambhavi Singh, Mr Vedant Kapur, Ms Anshika Saxena, Mr. Krishnendu Datta, Sr Advocatge, Mr. Abhishek Naik, Ms Gulaesha Kureshi, Mr Rehman Ghalib Kha
For the Respondents:Mr Jishnu Saha, Sr Advocate, Mr Farandees, Mr Divesh, Ms Neha Nagori, Mr. Farazanees, Mr Farazanees

Table of Content
1. factual background of share issuance and disputes (Para 1 , 2 , 3 , 4 , 5 , 6 , 7)
2. procedural history and petition maintainability (Para 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15)
3. estoppel by consent and participation (Para 16 , 17 , 18 , 44 , 45 , 61)
4. validity of private share placement and valuation (Para 19 , 23 , 24 , 25 , 27 , 28 , 29 , 46 , 47 , 48)
5. scope of nclt relief and financial scrutiny (Para 21 , 22)
6. section 77 violation via round-tripping loans (Para 26 , 31 , 32 , 50 , 51 , 52 , 53 , 54 , 55)
7. share purchase financing and securities act compliance (Para 37 , 38 , 39 , 40 , 41 , 42 , 56 , 57 , 58 , 59 , 60)
8. appeals allowed, impugned order set aside (Para 62 , 63)

JUDGEMENT

JUSTICE YOGESH KHANNA, MEMBER (JUDICIAL)

Company Appeal (AT) No’s 121, 123 and 124 of 2022 have been filed against common impugned order dated 18.07.2022 passed in C.P. No. 222 of 1991 by Ld. NCLT, Kolkata. Vide the impugned order, the petition under Section 397-398 of the Companies Act, 1956 was allowed after more than 31 years of its institution by passing various directions.

2. Before coming to the contentions raised it would be appropriate to state about the issues involved

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2026 Supreme(Online)(NCLAT) 450

NATIONAL COMPANY LAW APPELLATE TRIBUNALYogesh Khanna, Member (Judicial)Peerless General Finance Investment Co Ltd – AppellantVersusBhagwati Developers Pvt Ltd – Respondent

Cases Referred (4)

NATIONAL COMPANY LAW APPELLATE TRIBUNAL
Yogesh Khanna, Member (Judicial)
Peerless General Finance Investment Co Ltd – Appellant
Versus
Bhagwati Developers Pvt Ltd – Respondent