Jagran Prakashan dispute: Appointment of MD likely to take more time, NCLT told
The Allahabad bench of NCLT has adjourned the matter for October 31, 2023, for further hearing
The National Company Law Tribunal (NCLT) was recently informed that the appointment of the Managing Director of Jagran Prakashan is underway and is likely to take more time. The application was filed in a pending petition titled Mahendra Mohan Gupta and others vs Devendra Mohan Gupta and others under sections 241/242 and 244 of the Companies Act 2013 The submission was done by the counsels representing both the parties. Hence, the day-to-day functioning of the company has to be continued in the best interest of the company.
In the order, the bench noted there was a special arrangement made so as to permit the board to take a collective decision with regard to the major decisions in accordance with the provisions of the Articles of Association as well as with the provisions of the Companies Act; the said arrangement was to last till October 4, 2023.
The bench noted: “Now, the admitted position is that the appointment of the Managing Director is going to take more time and therefore the above arrangement would continue and it is made explicitly clear that this arrangement is for the purpose of smooth running/functioning of the company strictly in accordance with the provisions of the Articles of Association as well as the provisions of the Companies Act."
On July 10, Mahendra Mohan Gupta, Chairman & MD, Shailesh Gupta, Whole time director of the company and VRSM Enterprises LLP filed a petition before the NCLT, Allahabad alleging oppression by the majority stakeholders in the company.
The Allahabad bench of NCLT has adjourned the matter for October 31, 2023 for further hearing.
