Amalgamation of Non-Insurance Companies with Insurance Companies Doesn't Require Prior Approval Under Section 35(1) of Insurance Act

The NCLAT upheld the amalgamation of non-insurance transferor companies with insurance transferee companies, ruling that prior approval under Section 35(1) of the Insurance Act was not required. The Tribunal noted that post-merger, shareholders would maintain identical ownership percentages in the insurance companies, thus not triggering Section 6A requirements. The amalgamation process strictly followed Sections 230-232 of the Companies Act, with proper notices issued to authorities inviting objections. Finding no statutory prohibition in the Insurance Act mandating prior compliance with Section 35 before amalgamation under the Companies Act, the NCLAT determined the merger orders contained no legal errors warranting appellate intervention under Section 421. Appeal dismissed. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X