Summary
- The NCLAT Delhi has quashed the NCLT Mumbai's order directing a share buyout in the Sanjit Instruments case, citing lack of findings on oppression and mismanagement.
- The Tribunal emphasized that relief under Section 242(2) requires prior determinations under Sections 241 and 242(1), which were not established in this case.
- The NCLAT found that the valuation report used was outdated and did not reflect the company's current financial status, necessitating a fresh valuation.
- This ruling underscores the importance of statutory prerequisites in corporate disputes, potentially reshaping future buyout proceedings under the Companies Act.
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