2019 (10) TMI 1455 - Tri - Insolvency and Bankruptcy

Sanction of Scheme contemplated by the Promoters of the Company - Section 230 to 232 of the Companies Act, 2013 r/w Insolvency and Bankruptcy Code, 2016 - HELD THAT - The date of hearing of the Petition filed by the Petitioners for the sanction of the Scheme is fixed on 14th November 2019. Directions regarding issuance of notices also given - application disposed off.

Summary

Issues:
Company Application under Sec. 230-232 of Companies Act, 2013 and Insolvency and Bankruptcy Code, 2016 for admission and fixing date of hearing, publication in press, and issuance of notices for objections to Scheme by Promoters.

Analysis:
The Tribunal considered a Company Application filed by the Liquidator under Sec. 230 to 232 of the Companies Act, 2013 and Insolvency and Bankruptcy Code, 2016, following directions from the NCLAT. The Liquidator had previously filed a First Motion Application seeking directions for a meeting of Shareholders and Creditors, which resulted in directions being issued by the Tribunal. Subsequently, a second motion petition was filed for fixing a date of hearing and other consequential directions in accordance with the relevant provisions. The Tribunal ordered that the date of hearing for the Petition seeking sanction of the Scheme be set for 14th November 2019.

The Tribunal further directed that notice of the hearing should be advertised in specified newspapers and served on various Authorities, including the Central Government, Registrar of Companies, Income Tax office, Official Liquidator, and sectoral regulators. Additionally, notice was to be served to Objectors or their representatives as per the requirements of the Act. The Petitioners were instructed to file an affidavit of service before the date of the hearing, and objections to the Scheme were to be filed by the authorities to whom notices were given. Failure to file objections would imply no objection to the Scheme's approval, subject to other conditions under the Companies Act, 2013 and relevant rules.

Moreover, the Liquidator was directed to comply with the provisos of the Act by filing the certificate of the Company's auditor before the date fixed for the hearing. The next date of hearing for the Petition was scheduled for 14th November 2019 to consider the approval of the Scheme among the Companies. The Tribunal's detailed directions aimed to ensure compliance with legal procedures and facilitate a fair and transparent process for the approval of the Scheme proposed by the Promoters.