NCLAT allows Valli Arunachalam to file fresh waiver petition in Murugappa Group battle

An appellate tribunal has upheld a National Company Law Tribunal order allowing Murugappa Group scion Valli Arunachalam to file a fresh plea, for a waiver of the minimum shareholding requirement to raise her claims of oppression and mismanagement against the management of a group holding company.

In its order on Monday, a copy of which ET has seen, the National Company Law Appellate Tribunal said the NCLT's order permitting the fresh plea, with objections to be taken up at "appropriate stage", was "free from any legal flaws".

Ambadi Investments, the group holding company, had challenged the NCLT-Chennai's September 2021 order, which had allowed Arunachalam to pull out her waiver petition and file a fresh plea.


According to a lawyer present during the court proceedings, Monday's order effectively brings Valli's petition "closer to hearing".

"The hearing on the second application will continue before the NCLT ... This gives a new breather to the Valli Murugappan camp as their waiver application will be heard on merits, in light of the NCLAT decision," Ashish K Singh, managing partner of law firm Capstone Legal, told ET.

Arunachalam had filed the waiver petition because her shareholding, including that of her sister and mother, at 8.15% is lower than the 10% bar set for minority shareholders to raise disputes under the Companies Act.

Arunachalam has also been fighting to be recognised as the successor to her late father, former executive chairman MV Murugappan, on the board of Ambadi Investments.

She had sent out legal notices to the company and family members in October 2020, after a majority of shareholders turned down her nomination for a board seat at the holding company. She had alleged that her claim was rejected over her gender.