Mumbai: In a matter related to board representation, the National Company Law Tribunal (NCLT) has refused to reinstate Juliet Apparels‘ founder Gunvant Trevadia as a director of the company.
Mumbai-based Juliet Apparels Pvt. Ltd. owns the women’s innerwear brand ‘Juliet’. The dispute is between two branches of the family that founded the company.
The tribunal has, however, observed that the company shall be treated as a ‘quasi-partnership’ between the two branches of the founding family and has accordingly directed the company to add a seat on the board for the ousted faction. “The petitioner group’s right to have proportional representation in the board is consistent with the historical understanding discernible from the facts of the case; we are of the considered view that the respondent family group ought to allow another nominee from the petitioner group on the board of the company (Juliet Apparels Pvt Ltd) to represent their group,” said the division bench of judicial member Sushil Mahadeorao Kochey and a technical member Prabhat Kumar in its 40-page order.
Juliet Apparels was formed after the amalgamation of several family-owned partnership firms. Subsequently, Trevadia and his son approached the tribunal under Sections 241 and 242 of the Companies Act, alleging oppression and mismanagement by the rival branch of the family. The petition challenged the transfer of 747,000 shares belonging to Trevadia’s son and wife; board decisions approving changes to management and banking powers; the denial of access to company records; and Trevadia’s removal as a director in February 2025. Before the tribunal’s order, counsel Pulkit Sharma and Rohan Agarwal, appearing for Trevadia, argued that the company is like a quasi-partnership firm, vesting rights in each group to participate in the affairs of the company, which was incorporated as a vehicle for carrying on the business of the Trevadia family.The other faction , argued that the petitioner’s personal conduct renders him unfit to continue as a director.
