Glossary
Waiver under section 244
The tribunal's power under the proviso to section 244 of the Companies Act, 2013 to let a member petition for oppression without meeting the minimum holding.
Section 244 of the Companies Act, 2013 sets the minimum number of members, or the minimum share of the issued capital, needed to file a petition for oppression and mismanagement. The proviso lets the National Company Law Tribunal waive those requirements, so that a member below the threshold may still be heard.
The tribunals have drawn the edges in 2025 and 2026. The NCLAT at Chennai held in Madras Race Club v. R.D. Ramasamy that only an existing member may seek a waiver, and in Latha Balasubramanian v. IGP Engineers Private Limited that appointing a valuer by consent does not waive the threshold. The NCLAT upheld a waiver in Somangsu Biswas v. Calcutta Cricket & Football Club where the allegations had not been decided before, and the NCLT at Mumbai held on 30 July 2026 that merits are not examined at the waiver stage. The position is stated as at 21 September 2026.
Used in
Sources
- ActThe Companies Act, 2013indiacode.nic.inOn this site: The Companies Act, 2013
Cite this termWaiver under section 244. Juris Eagle glossary. Stated as at 21 September 2026. https://juriseagle.com/glossary/waiver-under-section-244