A Three-Decade Legal Battle for Peerless
For over three decades, Peerless General Finance and Investment Company Limited navigated a complex legal journey concerning corporate decisions made in 1987-88. The saga commenced in 1991, centering on a challenge to a private placement of 30,000 shares and the transfer of another 15,626 shares. This contentious issue traversed various legal forums, eventually landing before the National Company Law Tribunal (NCLT) in Kolkata. In July 2022, the NCLT delivered a verdict unfavorable to Peerless, but this decision was overturned by the National Company Law Appellate Tribunal (NCLAT) in April 2026. The NCLAT set aside the previous order, validating the transactions in question. Finally, the Supreme Court, on September 8, 2026, refused to intervene, dismissing the appeal from Bhagwati Developers Private Limited and thereby concluding the litigation.
Insights from Bikram Sarkar on Managing Long-Term Litigation
Bikram Sarkar, Head of Legal at The Peerless Group and a member of the promoter family, shared his insights on managing a case of such unprecedented longevity. According to Sarkar, the case was initially about specific transactions—the issuance of shares and their subsequent transfer. Over time, however, it represented something more significant for Peerless: a defense of corporate decisions that had stood the test of time. Despite the setback at the NCLT, Sarkar emphasized the importance of reassessing the case comprehensively to build a robust appellate strategy.
Strategizing the Appeal
When Peerless faced an adverse decision from the NCLT, Sarkar focused on distilling a voluminous, 30-year record into a targeted appellate argument. The strategy involved reconstructing the case chronology, segregating the transactions, and mapping adverse findings against the evidence. Anticipating the opposing arguments was also crucial to ensuring a comprehensive approach. The legal team, led by Harish Salve KC, played a pivotal role in cutting through the complexity and focusing on critical points. Ratnanko Banerji, Senior Advocate, was instrumental in the NCLAT proceedings, while Arunabha Deb and Anand Sukumar provided essential support before the Supreme Court.
The Dual Perspective of a Legal and Business Role
Sarkar’s unique position as both a legal advisor and a member of the promoter family influenced his approach to the litigation. This dual role allowed him to marry legal analysis with business insights, ensuring a balanced perspective in handling the case. He stressed the importance of separating personal concern from professional judgment to maintain objectivity.
Final Resolution and Reflections
Upon the Supreme Court’s decision to uphold the NCLAT’s ruling, there was a palpable sense of relief within Peerless. The resolution allowed the company to finally move past a dispute that had persisted for 35 years. Sarkar reflected on the lessons learned from this prolonged litigation, highlighting the vital role of thorough record-keeping and the necessity of robust corporate processes. He emphasized the importance of institutional memory, which ensures continuity and coherence in long-running cases. Lastly, Sarkar underscored the need for thorough reassessment following an adverse judgment, advocating for a proactive rather than reactive approach.
Bikram Sarkar serves as the Head of Legal at The Peerless Group.
Disclaimer: The views expressed in this article are those of the author(s) and do not necessarily reflect the opinions of Bar & Bench.
