NCLAT Upholds AGM Decision Against Deepak Chhabria's Reappointment at Finolex Cables

The National Company Law Appellate Tribunal (NCLAT) approved the AGM results of Finolex Cables, where shareholders voted against reappointing Deepak Chhabria to the board. The decision follows a complex legal battle involving share transfers and board reshuffles within Finolex and its holding company, Orbit Electricals.

The National Company Law Appellate Tribunal (NCLAT) has confirmed the outcome of the Annual General Meeting (AGM) of Finolex Cables, where shareholders voted overwhelmingly against the reappointment of Deepak Chhabria to the company's board. This decision comes as part of a protracted legal battle involving family members and stakeholders within Finolex Cables and its holding company, Orbit Electricals.

A two-member NCLAT bench, comprising Chairperson Justice Ashok Bhushan and Member (Technical) Barun Mitra, revealed that 72.34 percent of votes were cast against Chhabria's reappointment. The tribunal also retained the validity of an Extraordinary General Meeting (EGM) held by Orbit Electricals in 2019, which had amended the Articles of Association to limit Chhabria's powers.

The NCLAT has instructed the Mumbai Bench of the National Company Law Tribunal (NCLT) to expedite the resolution of a nearly eight-year-old legal dispute over the transfer of shares within the Chhabria family. The controversy, stemming from a gift deed executed in 2016, has resulted in multiple board meetings and claims of board misconduct, ultimately leading to legal actions for 'oppression' and 'mismanagement.'

(With inputs from agencies.)