2018 (11) TMI 1683 - Tri - Companies Law

Prayer for the dispensation of the Meeting of Shareholders and Creditors of all the Petitioner Companies - sanction of Scheme of Demerger - HELD THAT - The Scheme in Question cannot be sanctioned at present as admittedly several issues are pending to be finalized - appeal disposed off.

Summary

Issues:
Petitions under Sections 230 and 232 of the Companies Act, 2013 seeking dispensation of meetings of shareholders and creditors for approval of a Scheme of Demerger.

Analysis:
The Company Petitions were filed to request the dispensation of meetings of shareholders and creditors or to direct such meetings for considering and approving the Scheme of Demerger. The Scheme aimed to separate the wind energy generation business of the Demerged Company to one resulting company and the real estate, shares, and security investments to another resulting company. An objection was raised concerning pending investigations related to the mining business of the Demerged Company. The Registry sought clarification on these investigations, which were filed following chargesheets by the Special Investigation Team. The High Court had stayed proceedings in these investigations, and it was affirmed that they had no impact on the present proceedings. Due to the pending investigations and issues yet to be resolved, the Tribunal concluded that the Scheme could not be sanctioned at the moment. Consequently, the Company Petitions were disposed of with the liberty to file afresh after the pending investigations were concluded.