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NCLAT rejects IRDAI pleas against Shriram Group insurance arm mergers, citing no statutory bar under Insurance Act. File
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The National Company Law Appellate Tribunal (NCLAT) rejected pleas by the Insurance Regulatory and Development Authority of India (IRDAI) against the nod given for merger proposals of the insurance arm of Shriram Group.
Earlier, various Benches of National Company Law Tribunal (NCLT), approved the proposals to merge Shriram GI Holdings Private Limited (SGIH) with Shriram General Insurance Company Limited (SGIC) and Shriram LI Holdings Private Limited (SLIH) with Shriram Life Insurance Company Limited (SLIC).
The approval was given as per provisions of Section 230 to 232 of the Companies Act, 2013.
SGIH undertakes the business of investments, facilitate strategic, private equity and third-party investors, and to carry on consultancy business, including in particular in relation to the general insurance products sector, while SLIH main objective is to undertake investment business, as per a statement issued last year announcing Competition Commission of India’s nod for the proposals.
IRDAI petitioned the NCLAT against the NCLT order, arguing that it is mandatory to get approvals under section 35 (1) of the Insurance Act, when a firm in the insurance business merges with one that is outside the sector.
In its order dated March 10, the appellate tribunal held that section 35 of the Insurance Act does not place a statutory bar against such mergers when undertaken under Sections 230 to 232 of the Companies Act, 2013.
Published – March 12, 2025 04:13 pm IST
