2021 (10) TMI 541 - Tri - Companies Law

Sanction of scheme of Amalgamation - seeking directions with regard to meeting of Shareholders and Creditors in connection with the Scheme of Amalgamation - Section 230(1) read with Section 232(1) of the Companies Act, 2013 - HELD THAT - Meetings of the Equity Shareholders Unsecured Creditors of the Applicant No. 1 Applicant No. 2 are dispensed with under section 230(1) read with Section 232(1) of the Act - Directions regarding issuance of various notices also issued. Application disposed off.

Summary

Issues:
Application for orders and directions under Section 230(1) read with Section 232(1) of the Companies Act, 2013 regarding Scheme of Amalgamation of two companies.

Detailed Analysis:

1. Scheme of Amalgamation: The application was filed for orders and directions related to the Scheme of Amalgamation of two companies. The Transferor Company was proposed to be amalgamated with the Transferee Company from the Appointed Date, with specific terms and conditions stated in the Scheme.

2. Shareholders and Creditors: The Applicant Companies had different classes of Shareholders, Creditors, and Debenture holders. The shares of the Applicant Companies were not listed on any stock exchanges. The Board of Directors of both companies unanimously approved the Scheme of Amalgamation at their respective meetings.

3. Consent of Shareholders and Creditors: Majority of Equity Shareholders and unsecured Creditors of both Applicant Companies had already given their consent to the Scheme through affidavits. 99.8% of Equity Shareholders of Applicant No. 1, 97.7% of Equity Shareholders of Applicant No. 2, and 100% of unsecured Creditors of both companies had consented to the Scheme.

4. Directions Sought: The application sought directions to dispense with the meeting of classes of shareholders and creditors who had already given their consent to the Scheme, in accordance with Section 230(1) read with Section 232(1) of the Act.

5. Tribunal's Decision: After reviewing the records and submissions, the Tribunal allowed the application and passed specific directions. The meetings of Equity Shareholders and Unsecured Creditors of both Applicant Companies were dispensed with. The Applicant Company was directed to serve notices to relevant authorities within two weeks, as per the Companies Act, 2013 and related Rules.

6. Compliance: The Applicant Companies were required to file an affidavit of service to report compliance with the directions regarding the issuance of notices. Additionally, the Applicant(s) were instructed to file an affidavit confirming compliance with all directions of the Tribunal.

7. Disposal of Application: The application, identified as Company Application (CAA) No. 96/KB/2021, was disposed of accordingly by the Tribunal. A certified copy of the order would be issued upon compliance with all necessary formalities.