Please refer to our previous announcement submitted on July 11, 2023 regarding Case againstLibas Consumer Products Limited, its Directors and KMP vs Mrs. Reshma Ganji under Section 241and 242 read with Section 244 of the Companies Act, 2013 for oppression and mismanagement.The National Company Law Tribunal (NCLT), Mumbai on June 13, 2025 pronounced the order infavour of the company and disposed off the application filed by Mrs. Reshma Ganji.
LIBAS · price
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Awaiting price reaction for this filing.
In June 2023, promoter Mrs. Reshma Ganji had filed a case against Libas Consumer Products, its directors, and key managerial personnel under Sections 241, 242, and 244 of the Companies Act, 2013, alleging oppression and mismanagement. On June 13, 2025, the NCLT Mumbai bench dismissed the application, ruling in favour of the company. The tribunal observed that the matter was essentially a matrimonial dispute between Mrs. Ganji and Mr. Riyaz Ganji (Respondent No. 2) that had been dressed up as a corporate grievance. The NCLT found no evidence that the company's affairs were being run in a manner prejudicial to its interests, noting that the applicant herself had stopped participating in day-to-day operations. No penalty, restriction, or non-compliance was flagged, and the company is not required to take any further action.
This is a positive development for the company and its shareholders, as a long-pending promoter-level legal challenge has been conclusively dismissed with no penalties. Removal of the litigation overhang removes a key uncertainty, though the underlying promoter dispute remains a watchpoint for corporate governance.