9911796707
TMI Blog2014 (4) TMI 1320X X X X Extracts X X X X X X X X Extracts X X X X ..... ce the rights of the creditors, there are no impediment in granting the relief prayed for herein. Consequently, this petition seeking approval to the resolution passed is hereby granted. Clause (a) of sub Section (2) of Section 102 of the Companies Act, 1956, provides that the Court may, for any special reason, if it thinks proper so to do, direct the company to add the words and reduced to its name on the last words thereof during the period commencing from the date of the Court s order till such time as the court specifies in its order. The purpose of such inclusion is only to put on notice the investing public the state of affairs of the company and that it has gone for reduction of the capital - Taking note of the circumstances warranti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne Thousand Five Hundred) equity shares of Rs. 10/- (Rupees Ten) each. At the date of registration of this minute the company shall extinguish 3,99,500 (Three Lakhs Ninety Nine Thousand Five Hundred) equity shares forming part of the paid-up equity share capital." 2. A copy of the last audited annual accounts as on 31.3.2013 is marked as Annexure B. It is stated that the name of the company was changed from Comtec Components Private Ltd., to Comtec Components Limited after becoming a deemed public company with effect from October 11, 1991 and, consequently a fresh certificate of incorporation consequent on the change of name was issued. The company is presently not engaged in any commercial operation. Further, the petitioner submits that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en only) per share and, thereby extinguishing all 3,99,500 (Three Lakhs Ninety Nine Thousand Five Hundred only) equity shares which is lost and is unrepresented by available assets. It is further submitted that after the proposed reduction the company's equity share capital by adjusting with debit balance and Profit and Loss account, the company's financial statements will exhibit more realistic picture of the financial position of the company. Further the company has no secured or unsecured creditors and, hence, there is no question of interests of the company's creditors to be adversely affected. 3. On 21.10.2013, the Board of Directors of the petitioner company convened the Extra-Ordinary General Body Meeting of the petition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ets." 4. The resolution passed in the minutes of the said meeting are also enclosed to this petition. It is also stated by the petitioner that as the reduction of capital does not involve any cash outflow, the same will not affect the normal operations of the company or its ability to honour its commitments in the ordinary course of business. Further, the company has also no secured or unsecured creditor and therefore, there is no question of interests of the company's creditors to be adversely affected. In the light of the resolution passed unanimously approving the reduction of capital, this petition is filed before this Court for approval of the share capital as per the resolution. The petitioner also seeks liberty of this court fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being no cash outflow or for any creditor to object, the procedure laid down under Section 100 fully complied with, there is no impediment in granting the prayer confirming the reduction of capital as resolved by the company in its special resolution dated 21.10.2013 confirmed so as to be binding on all the shareholders and creditors of the petitioner company. The words "and reduced" pursuant to the reduction approved, is dispensed with. In the light of the above-said facts, the prayer sought for herein is granted. 9. Consequently, the petition is ordered to the effect that approving the resolution passed on 21.10.2013 for the reduction of the share capital to Rs. 5,00,000/- (Rupees Five Lakhs only) divided into 50,000 (Fifty Thousand) equ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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