2015 (12) TMI 1724 - HC - Companies Law

Scheme of arrangement - directions issued pertaining to the meeting of the Secured Creditors - Held that - The meeting of Secured Creditors could not be held and all the Secured Creditors instead of attending the meeting have given their consent in writing, in approval of the Scheme of Arrangement. In the facts and circumstances, the directions contained to the extent of holding and convening the meeting of the Secured Creditors are directed to be omitted. Further, in view of the fact that all the Secured Creditors have given their consent, in writing, in approval of the Scheme, the meeting of the Secured Creditors is ordered to be dispensed with.

Summary

Issues: Review and modification of directions pertaining to the meeting of Secured Creditors in Company Application No.319 of 2015.

Analysis:
1. The applicant sought a review and modification of the oral order dated 27.10.2015 passed by the Court in Company Application No.319 of 2015 regarding the meeting of Secured Creditors.

2. The applicant's advocate highlighted that the initial application requested direction to convene meetings of both secured and unsecured creditors. The Court had directed the applicant company to hold these meetings on 10.12.2015. While the meeting of unsecured creditors took place as scheduled, the secured creditors provided written consent approving the Scheme of Arrangement instead of attending the meeting. A certificate from a Chartered Accountant confirmed this consent.

3. After hearing the applicant's counsel and reviewing the previous order, the Court noted that the meeting of secured creditors did not occur as they all consented in writing to the Scheme of Arrangement. Consequently, the Court decided to omit the directions related to holding the meeting of secured creditors and dispensed with the need for such a meeting due to all secured creditors providing written consent for the Scheme.

4. Based on the above considerations, the Court disposed of the present application, thereby resolving the issue of review and modification of directions concerning the meeting of Secured Creditors in Company Application No.319 of 2015.