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2021 (8) TMI 1149 - Tri - Companies LawSanction of Scheme of Amalgamation - Section 230(6) read with Section 232(3) of the Companies Act, 2013 - HELD THAT - There appears to be no impediment in sanctioning the present Scheme. Consequently, sanction is hereby granted to the Scheme under section 230 232 of the Companies Act, 2013 upon the directions issued. The application is allowed.
Issues Involved:
1. Sanction of the Scheme of Amalgamation under Sections 230(6) and 232(3) of the Companies Act, 2013. 2. Compliance with statutory requirements and accounting standards. 3. Observations and responses to the Regional Director’s (RD) affidavit. 4. Compliance with procedural formalities and directions. Issue-Wise Detailed Analysis: 1. Sanction of the Scheme of Amalgamation: The petition was filed for the sanction of the Scheme of Amalgamation between Rameshwaram Laboratories Private Limited (RLPL) and Shivsathi Commercial Limited (SCL). The Board of Directors of both companies approved the scheme on 24th August 2020. The amalgamation aimed to consolidate the business for better management, prevent cost duplication, and leverage combined assets for a stronger business. The statutory auditor confirmed that the accounting treatment in the scheme conforms to the prescribed standards. No proceedings were pending under Sections 210 to 227 of the Companies Act, 2013 against the petitioners. The exchange ratio of shares was fixed on a fair and reasonable basis by a registered valuer. Meetings of shareholders and creditors were dispensed with as all consents were received. 2. Compliance with Statutory Requirements and Accounting Standards: The petitioners complied with all statutory formalities for obtaining the sanction of the scheme. The scheme was bona fide and in the interest of all concerned. Notices were served to the Central Government, Registrar of Companies, and Income Tax Authorities, and advertisements were published as required. The Official Liquidator concluded that the affairs of the Transferor Companies were not conducted prejudicially. The RD’s observations were addressed by the petitioners in their rejoinder affidavit. 3. Observations and Responses to the RD’s Affidavit: - Appointed Date Justification: The appointed date of 1st April 2019 was justified as it was the valuation date and based on the latest available audited financial statements. The delay in filing was due to the COVID-19 lockdown. - Compliance with Section 232(3)(i): The scheme mentioned that only the amount of authorized capital of the Transferor Companies, which can be raised by utilizing the fees already paid, would be added to the Transferee Company’s authorized share capital. - Stamp Duty: The Transferee Company agreed to pay applicable stamp duty on the transfer of immovable properties. - Accounting Standards: The scheme stated that amalgamation would be accounted for in accordance with Accounting Standard 14 or applicable IND AS. - Scheme Consistency: An affidavit confirmed that the scheme filed with the application and petition were the same. - Notices to Authorities: Notices were served to concerned authorities, and an affidavit of service was filed. - Requisite Majority Approval: The Tribunal had dispensed with the holding of meetings after considering the consent affidavits received from shareholders and creditors. - Income Tax Department Views: The scheme was forwarded to the Income Tax Department, and their views were awaited. 4. Compliance with Procedural Formalities and Directions: The Tribunal found no impediment in sanctioning the scheme and granted the sanction with the following directions: - The scheme is binding on all equity shareholders and creditors from 1st April 2019. - All property, rights, and obligations of the Transferor Company are transferred to the Transferee Company. - All employees of the Transferor Company will be engaged by the Transferee Company. - Legal proceedings against the Transferor Company will continue against the Transferee Company. - The Transferee Company will issue shares to the members of the Transferor Companies as per the scheme. - The Transferor Company will be dissolved without winding up upon registration of the order with the Registrar of Companies. - The petitioners will supply a legible printout of the scheme and schedule of assets to the department. The petition was disposed of accordingly, and an urgent certified copy of the order was to be issued upon compliance with requisite formalities.
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