NCLAT sets aside plea against RelRetail
Upholds earlier order by NCLT, says non-promoters were offered a ‘fair value’ of their shares
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New Delhi: In a relief to the Reliance Industries (RIL) arm Reliance Retail Ltd (RRL), appellate tribunal NCLAT has set aside a petition against the leading retailer, which in 2023 reduced the equity share capital of the company, saying non-promoters were offered a ‘fair value’ of their shares.
Reliance Retail had in 2023 decided to reduce and cancel 78,65,423 equity shares of the company, held by the minority shareholders, other than the promoters/holding company. Observing that non-promoter shareholders were offered a ‘fair value’ of their shares during the exercise and an overwhelming majority voted in favour of the resolution, the appellate tribunal upheld the earlier order passed by the National Company Law Tribunal (NCLT) and said “it found no reason to upset a reasoned order passed by it.”
The NCLAT, while referring to previous judgments, said: “Selective reduction is permissible if objecting shareholders are paid a fair value of their shares.”
