2018 (6) TMI 1757 - Tri - Insolvency and Bankruptcy

Seeking directions of this Tribunal for dispensation of meetings of shareholders and creditors of Auxinite Marketing Limited (Transferor Company) with Bajaj Polyblends Private Limited - HELD THAT - The meetings of the Equity Shareholders of the Applicant Companies are hereby dispensed with, as Learned Counsel for the Applicant Companies submit that All the Shareholders of Applicant Companies has given affidavit duly notarised signifying their consent to the proposed Scheme and has also consented to waiver/dispensation of holding of meeting for considering said Scheme. which are annexed to this Company Petition. Application disposed off.

Summary

Issues:
Dispensation of meetings of shareholders and creditors for a scheme of amalgamation.

Analysis:
The application sought directions for dispensation of meetings of shareholders and creditors of the Transferor and Transferee Companies regarding a scheme of Amalgamation. The Applicant Companies had already approved the scheme through Board Resolutions, aiming at consolidating their business operations. The objective was to streamline the corporate structure, enhance management efficiency, and benefit the shareholders by creating a common performing platform. All shareholders had given their consent to the scheme, and meetings of equity shareholders and unsecured creditors were dispensed with based on the notarized affidavits of consent provided by the shareholders. The Applicant Companies were required to serve notices to relevant authorities and the Official Liquidator, ensuring compliance with legal procedures under the Companies Act, 2013 and Companies (Compromises, Arrangements & Amalgamations) Rules, 2016.

The Applicant Transferee Company had 61 unsecured creditors with a value of Rupees 10,15,49,608, and the Applicant Transferor Company had four unsecured creditors with a value of Rupees 60,75,000 as of 31.03.2020. The need for separate meetings of unsecured creditors was dispensed with due to the consent received through affidavits. The Applicant Companies were directed to serve notices to the Central Government, Registrar of Companies, and Income Tax Authority, ensuring compliance with Section 230(5) of the Companies Act, 2013. Additionally, notices of the hearing were to be served to the Official Liquidator, High Court, Calcutta, to facilitate scrutiny of the Transferor Companies' books for the last five years. The Applicant Companies were mandated to file an affidavit with the registry confirming compliance with the directions provided in the order.

The judgment disposed of the application in the specified terms, with the connected company petition required to be filed within six weeks from the date of the judgment. The decision reflected a thorough consideration of the legal requirements and procedures for dispensing with meetings of shareholders and creditors in the context of a scheme of amalgamation, emphasizing compliance with statutory provisions and ensuring transparency in the process.