The Supreme Court underscores that the nomination procedure outlined in the Companies Act does not override the principles of succession laws

Case: Shakti Yezdani & Anr. V Jayanand Jayant Salgaonkar & Ors.

Coram: Justice Hrishikesh Roy and Justice Pankaj Mithal

Case No.: CIVIL APPEAL NO. 7107 OF 2017

Court Observation: “Additionally, there is a complex layer of commercial considerations that are to be taken into account while dealing with the issue of nomination pertaining to companies or until legal heirs are able to sufficiently establish their right of succession to the company. Therefore, offering a discharge to the entity once the nominee is in picture is quite distinct from granting ownership of securities to nominees instead of the legal heirs. Nomination process therefore does not override the succession laws. Simply said, there is no third mode of succession that the scheme of the Companies Act, 1956 (pari materia provisions in Companies Act, 2013) and Depositories Act, 1996 aims or intends to provide.”

Previous Posts

Madras High Court Hands Down 3-Year Jail Term to TN Minister Ponmudi in Disproportionate Asset Case

Bombay High Court Grants Bail to Murder Accused Detained for 5 Years Without Formal Charges Being Framed

Bombay High Court (Full Bench) states that a victim cannot appeal under Section 14-A of the SC/ST Act for acquittal or bail in cases involving both POCSO and SC/ST Acts

In POCSO cases, the Bombay High Court instructs the state government to establish guidelines for conducting Test Identification Parades, with a focus on maintaining the confidentiality of the victim

Punjab and Haryana High Court sees the state seeking the Union of India’s opinion on the appointment of district judges as a significant threat to the independence of the high court’s functioning

Keywords

The Supreme Court underscores that the nomination procedure, Companies Act, succession laws