9911796707
|
Home
Issues:
Approval and sanction for the scheme of amalgamation of transferor-company into transferee-company under sections 391/394 of the Companies Act, 1956. Opposing creditor's objection due to unpaid dues. Analysis: 1. The petitions were filed seeking approval for the scheme of arrangement, amalgamating the transferor-company into the transferee-company, transferring all assets and liabilities. Separate meetings were held for equity shareholders' approval as directed by the court. 2. Necessary approvals were obtained, and petitions were filed for court sanction under sections 391/394. Notices were issued to Official Liquidator, Regional Director, and creditors. Affidavits proving service were filed. Official Liquidator and Regional Director had no objections. 3. During the hearing, no member opposed, but an objecting creditor raised concerns about unpaid dues. The creditor provided detailed documentation of the outstanding amount and opposed the scheme unless paid or secured adequately. 4. The petitioner argued that most dues were settled, except for a disputed amount. They contended that the scheme did not require payment or security for disputed claims under sections 391/394, unlike sections 100-105. The creditor's objection was based on the potential adverse impact of the scheme on creditors. 5. The court rejected the argument that it lacked power to direct payment or security for objecting creditors under sections 391/394. It stated that if a scheme was deemed unfair or unjust to creditors, it could be rejected or sanctioned with conditions to address concerns. 6. The court emphasized that objecting creditors must demonstrate the scheme's adverse effects on them and show unjustness or unfairness. In this case, the objecting creditor failed to establish adverse impact or unjustness in the scheme. 7. As no other objections were raised, the court sanctioned the scheme, allowing both petitions in favor of the companies. Costs were awarded to the Official Liquidator, Regional Director, and the companies. 8. The judgment highlighted the court's authority to sanction schemes under sections 391/394, emphasizing the need for objecting creditors to prove adverse effects and unjustness. In this case, the objecting creditor failed to demonstrate any adverse impact or unjustness in the proposed scheme.
|
