NCLAT Dismisses Adesh Kumar Gupta's Appeal Against Liberty Shoes

The National Company Law Appellate Tribunal (NCLAT) has dismissed the petition of Adesh Kumar Gupta, former CEO of Liberty Shoes, who sought an exemption from the minimum shareholding requirement to file a case of oppression and mismanagement against the company. The tribunal deemed the circumstances not exceptional enough to merit a waiver.

The National Company Law Appellate Tribunal (NCLAT) has rejected Adesh Kumar Gupta's bid to challenge Liberty Shoes for alleged oppression and mismanagement. Gupta, who owns a 5.83% stake in the company, sought a waiver of the 10% shareholding requirement to file such cases under Section 244 of the Companies Act.

Gupta was removed from his executive roles in Liberty Shoes in 2023, prompting him to seek legal recourse. Both the National Company Law Tribunal (NCLT) and NCLAT concluded that there were no exceptional circumstances to grant the waiver, reinforcing that the purpose of Section 241 is to protect company interests, not address personal grievances.

NCLAT also dismissed Gupta's references to waivers granted in previous high-profile cases, asserting those did not undermine the validity of the NCLT's decision. This dismissal underscores the stringent nature of the waiver provision and its intended rare application.

(With inputs from agencies.)