The National Company Law Tribunal (NCLT) has disposed of a company petition filed by Eros International Media against Aanand L. Rai and his Colour Yellow Productions, terming it a “dressed-up” and “vexatious” petition.
Colour Yellow contended via CA No. 244 (MB) 2025 that Eros had invoked section 242 of the Companies Act, 2013, despite the dispute being contractual in nature and subject to an arbitration clause previously agreed between the parties.
The NCLT agreed with the contention of Colour Yellow and held that the petition was filed by Eros to circumvent the agreed arbitration mechanism, in order to seek reliefs which are not meant to be decided by the Tribunal. In this way, the NCLT allowed and disposed of CA No. 244 (MB) 2025. Eros International Media’s CP No. 121 (MB) 2025, therefore, stands disposed of.
Eros International Media had acquired a stake in Colour Yellow, and the two companies produced several films together. It alleged in 2025 that Colour Yellow indulged in acts of oppression and mismanagement, including non-disclosure of financials, unauthorised transactions, and related-party transactions without requisite Board approvals. In particular, it alleged that Colour Yellow had made payments of Rs. 80 crore to related parties without Eros’ approval.
Eros on June 24, 2025 had secured interim protection from the Bombay bench of the NCLT against Colour Yellow. The NCLT had issued the following directions:
(i) Seven days’ prior notice must be given to Eros before convening any Board or shareholder meetings of Colour Yellow;
(ii) No payments shall be made to related parties of Colour Yellow during the pendency of the petition.
The current order of the NCLT vindicates the stand taken by Colour Yellow.