Mumbai, August 7, 2026: The National Company Law Tribunal (NCLT), Mumbai Bench, has asked Atlas Equifin to explain within four weeks why contempt proceedings should not be initiated against the firm, observing that the company has persistently failed to comply with judicial directions requiring it to pay the admitted amount due to actor Jackie Shroff in a long-running dispute over the buyback of his shares.

In an order passed on July 24, the bench of Technical Member Prabhat Kumar and Judicial Member Sushil Mahadeorao Kochey said the company’s repeated non-compliance despite several opportunities reflected a clear disregard for the tribunal’s orders. It therefore directed the issuance of a show-cause notice under Section 425 of the Companies Act, 2013, read with the Contempt of Courts Act.

“The evidence demonstrates that M/s Atlas Equifin Pvt. Ltd. has been avoiding compliance to the grounds time and again, thereby deferring even the payment of the decretal amount as admitted by them to be payable,” the order copy read.

Company Cites Pending Appeal

During the hearing, Atlas Equifin informed the tribunal that it has challenged the NCLT’s June 15, 2026 order before the National Company Law Appellate Tribunal (NCLAT), where the appeal is listed on August 20, 2026. The company also indicated that it was considering filing an application seeking recall of the June order.

The tribunal, however, noted that the earlier direction only required payment of the amount that Atlas Equifin had itself acknowledged as payable, while the disputed valuation issue would be decided by the appellate forum.

Earlier Directions Recalled

The bench recalled that on June 15 it had ordered the company to liquidate available funds, including money lying in bank accounts, investments, and receivables, and pay the admitted dues within 30 days. It had also cautioned that failure to comply could result in garnishee orders against entities owing money to the company.

Tracing the history of the litigation, the tribunal noted that Atlas Equifin had repeatedly sought extensions after assuring the court that it would complete the share buyback process. Even after relying on its own valuation report and acknowledging liability to pay at least that amount, the company did not make the payment, the bench observed.

“Record reveals that the matter was listed on Board on 15.06.2026, on which date the firm was directed to liquidate the amounts and pay the amount, as has been admitted payable by them consistently based on the valuation report relied upon by them, to the petitioner within 30 days. This Bench further made it very clear that in case the firm fails to liquidate their amount in PMS account or receivables from Grandway Technologies Private Limited and Genejunction Healthcare Services Pvt. Ltd., this Tribunal shall be constrained to issue garnishee orders requiring these parties to immediately liquidate and pay forthwith the unpaid amount,” the order copy reads.

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