2015 (12) TMI 1725 - 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 involved:
Review and modification of oral order dated 27.10.2015 pertaining to the meeting of Secured Creditors in Company Application No.318 of 2015.

Analysis:
The applicant sought a review and modification of the oral order passed by the Court regarding the meeting of Secured Creditors in Company Application No.318 of 2015. The applicant's advocate highlighted that the initial application requested directions to convene meetings of both secured and unsecured creditors. The Court had previously directed the applicant company to hold meetings for both categories of creditors on a specific date. However, it was noted that while the meeting of unsecured creditors took place as scheduled, the secured creditors provided written consent instead of attending the meeting. The consent letters and a certificate confirming the secured creditors' approval of the Scheme of Arrangement were presented to the Court.

Upon hearing the applicant's counsel and reviewing the application and the previous order, the Court acknowledged that the meeting of Secured Creditors could not be conducted as planned. Considering the circumstances where all secured creditors had given written consent in favor of the Scheme of Arrangement, the Court decided to omit the directions related to holding the meeting of Secured Creditors as per the order dated 27.10.2015 in Company Application No.318 of 2015. Consequently, since all Secured Creditors had provided written approval, the Court dispensed with the need for a meeting of Secured Creditors. The Court then disposed of the present application based on these findings.