NCLAT says Section 244 Threshold Must Facilitate, Not Frustrate, Oppression Proceedings

The Indian Motion Picture Producers Association, a company without share capital, faced an objection that the Section 241/242 petition was not maintainable because the waiver application under Section 244 was filed subsequently. NCLAT rejected the objection, noting that the petition itself recorded 977 eligible voting members and consent of 209 members - exceeding the one-fifth threshold. The Tribunal also held that Section 244 is regulatory, not intended to obstruct access to judicial remedies.