2020 (10) TMI 1246 - Tri - Companies Law

Reduction of Share Capital - the Applicant present with this Application for amending the Company Petition for Reduction of Share Capital from Rs. 600 Crores to Rs. 300 Crore - HELD THAT - On being satisfied with the submissions and explanation given in the pleadings this Application is allowed. Accordingly this Application is allowed.

Summary

Issues involved:
Reduction of Share Capital from Rs. 600 Crores to Rs. 300 Crores due to Covid-19 pandemic.

Analysis:
The Tribunal's work was suspended due to the Covid-19 pandemic, but urgent matters were being heard through Video Conference (VC) as per the Order dated 31.07.2020. The Applicant's counsel appeared before the Bench seeking permission to amend the Company Petition for Reduction of Share Capital from Rs. 600 Crores to Rs. 300 Crores. The Applicant explained that the decision to reduce the share capital was made by the Company's Board of Directors in a meeting held on 13/05/2020, and subsequently approved by the shareholders in an Extraordinary General Meeting on the same day. The Tribunal, after considering the submissions and explanations provided, decided to allow the amendment application.

The Tribunal acknowledged the impact of the prevailing pandemic on the Company's decision to reduce the share capital and the necessary approvals obtained from the Board of Directors and the shareholders. The Applicant's request for amending the Company Petition to reflect the reduced share capital from Rs. 600 Crores to Rs. 300 Crores was found satisfactory, and the Tribunal granted permission for the same. The Tribunal directed the Company Petition to be listed for a hearing on 29/10/2020, and instructed the Applicant to inform the Registrar of Companies (RoC) and Regional Director (RD) about the next hearing date.