NCLAT Orders Vadilal Enterprises to Maintain Board Status Quo Amid Family Dispute

The NCLAT has directed Vadilal Enterprises and Vadilal International to maintain the current structure of their boards amid a family dispute involving the Vadilal Gandhi family. The order aims to prevent further complications before the final hearing set for September 26, 2024, following an appeal by Rajesh R Gandhi.

The National Company Law Appellate Tribunal (NCLAT) has issued an order directing Vadilal Enterprises Ltd (VEL) and Vadilal International Ltd (VIL) to maintain the status quo regarding their board structures until further notice.

A two-member NCLAT bench passed this interim order, underscoring that any changes to the board structure would further complicate the ongoing dispute among members of the Vadilal Gandhi family. The final hearing is scheduled for September 26, 2024.

The appeal in question was filed by Rajesh R Gandhi. He seeks to maintain the pre-existing positions of board directors, challenging a board resolution that authorized the retirement of Virendra R Gandhi from the board. The NCLAT’s order follows partially favorable rulings by the National Company Law Tribunal (NCLT) and highlights ongoing litigation focused on alleged oppression and mismanagement within the family business.