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CS Professional · Drafting, Pleadings and Appearances · Applications, Petitions and Appeals under Companies Act, 2013

Meera, a minority shareholder of Sagar Foods Ltd., was not a party before the NCLAT, but an NCLAT order directly and adversely affected her shareholding rights. Her advisor says she cannot appeal as she was not a party. Which statement is correct under section 423?

Section 423 allows any person aggrieved by an NCLAT order to appeal, not just parties. Meera may therefore appeal on a question of law within sixty days from the date the order is received by her, so the advisor's view is wrong.

  1. AOnly parties named in the NCLAT proceedings may appeal
  2. BAny person aggrieved by the NCLAT order may file an appeal on a question of law within sixty days of receipt of the order by herCorrect
  3. COnly the company may appeal on behalf of shareholders
  4. DOnly the Central Government may appeal against NCLAT orders

Explanation

Section 423 uses the words 'any person aggrieved', not 'party'. So Meera, if aggrieved, may appeal on a question of law within sixty days from receipt of the order by her. The limitation is counted from receipt by her, not by the company.

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