Section 430 of CA 2013 : Section 430: Civil Court Not To Have Jurisdiction

Explanation using Example

Imagine a company, XYZ Pvt Ltd, is undergoing a merger process and a minority shareholder believes that the merger terms are unfair. The shareholder decides to file a lawsuit in a civil court seeking an injunction to halt the merger. However, under Section 430 of the Companies Act, 2013, the civil court does not have the jurisdiction to entertain this lawsuit because the matter of mergers and acquisitions falls under the purview of the National Company Law Tribunal (NCLT). Thus, the civil court must dismiss the case, and the shareholder must approach the NCLT to address their grievances regarding the merger.