New Delhi: The Supreme Court of India has dismissed an appeal filed by Pawan Kumar Ahluwalia, thereby refusing to interfere with the National Company Law Appellate Tribunal’s (NCLAT) order directing restoration of disputed shareholding in the ongoing KJS Cement corporate dispute.
The decision marks the latest judicial development in a series of proceedings before the Delhi High Court, the National Company Law Tribunal (NCLT), the National Company Law Appellate Tribunal (NCLAT), and the Supreme Court concerning allegations of forgery, unlawful transfer of shares, misuse of corporate authority, and attempts to exercise illegal control over company assets.
The dispute arose following the death of KJS Cement founder KJS Ahluwalia, after which questions emerged regarding succession and control over the company’s shareholding and management structure. Proceedings were subsequently initiated by Manjula Ahluwalia and Himangini Singh, who asserted their rights as Class-I legal heirs and challenged several corporate actions allegedly undertaken by Pawan Kumar Ahluwalia in his capacity as Managing Director.
One of the principal allegations concerned the use of a disputed Gift Deed and the alleged misuse of a Power of Attorney to transfer a substantial number of shares in the company. The proceedings also involved allegations relating to forgery, financial irregularities, illegal board resolutions, and diversion of company funds.
In proceedings before the Delhi High Court, petitions seeking quashing of criminal proceedings and First Information Reports relating to alleged forgery and financial misconduct were rejected. The High Court observed that the allegations raised issues extending beyond a purely civil dispute and involved matters requiring criminal investigation into allegations of conspiracy, fabrication of documents, and financial impropriety. The Court also recognised the locus standi of Himangini Singh to pursue the complaints and permitted the investigation to continue.
Subsequently, the dispute concerning the transfer of shares came before the National Company Law Appellate Tribunal. In its order dated March 11, 2026, the NCLAT examined the legality of the disputed Gift Deed and the underlying authority claimed under the Power of Attorney. The tribunal observed that the Power of Attorney, allegedly executed for the management of immovable properties situated in Madhya Pradesh, could not prima facie be utilised for the transfer of shares of a Delhi-based company. On that basis, the tribunal directed restoration of 55,97,768 shares to Himangini Singh and Manjula Ahluwalia, substantially affecting the existing control structure within the company.
Challenging the NCLAT order, Pawan Kumar Ahluwalia approached the Supreme Court by way of Civil Appeal No. 4298 of 2026.
The matter was heard by a Bench comprising Justice B.V. Nagarathna and Justice Ujjal Bhuyan. After hearing the parties, the Supreme Court declined to interfere with the impugned order and dismissed the appeal.
The Court recorded: “We do not find any reason to interfere with the impugned order. Hence, the Civil Appeal is dismissed.”
The order dated April 13, 2026, further directed that all pending applications stand disposed of.
With the dismissal of the appeal, the NCLAT directions restoring the disputed shareholding remain operative, while the criminal proceedings and investigations arising out of the allegations of forgery and financial misconduct continue independently before the competent authorities.
Case Title: Pawan Kumar Ahluwalia v. Himangini Singh & Others [Civil Appeal No. 4298 of 2026]
