2017 (1) TMI 522 - HC - Companies Law

Scheme of Amalgamation - Held that - Sanction is hereby granted to the Scheme of Amalgamation under sections 391 and 394 of the Companies Act, 1956. The Petitioners will comply with the statutory requirements in accordance with law.

Summary

Issues:
1. Scheme of Amalgamation under sections 391 and 394 of the Companies Act, 1956.

Analysis:
The judgment involves a joint petition under sections 391 and 394 of the Companies Act, 1956 for the sanction of a Scheme of Amalgamation between a Transferor Company and a Transferee Company. The Transferor and Transferee Companies sought approval for the proposed Scheme, highlighting the financial benefits, operational efficiencies, and resource optimization expected from the amalgamation. The share exchange ratio for the amalgamation was detailed in the Scheme, indicating the issuance of shares by the Transferee Company for every share held in the Transferor Company. The Board of Directors of both companies unanimously approved the Scheme, and earlier directions were obtained to dispense with the requirement of convening shareholder and creditor meetings. Compliance with publication requirements and absence of objections from the Official Liquidator and the Regional Director were noted. Consequently, the Court granted sanction to the Scheme of Amalgamation under sections 391 and 394 of the Companies Act, 1956, with a directive for compliance with statutory obligations.

The judgment emphasized the compliance with statutory provisions and the need for the Petitioners to adhere to all aspects of the approved Scheme. It clarified that any deficiencies or violations of laws by the concerned persons, directors, or officials of the Petitioners would not be shielded by the sanction granted by the Court. The dissolution of the Transferor Company without winding up was ordered, with a specific mention that the order did not exempt the parties from stamp duty, taxes, charges, permissions, or other legal obligations. Additionally, a cost of ?2,00,000 was imposed on the Petitioners to be deposited in the Delhi High Court Bar Association Lawyers' Social and Welfare Fund within a specified timeframe. The petition was allowed in the stated terms and disposed of accordingly, outlining the finality of the Court's decision and the obligations imposed on the parties involved.