Company Petition No. 38 of 2001 · Gujarat High Court · 2001
Case at a glance
Outcome
Allowed
present petition stands allowed
Provisions considered
- Constitution of India
- Companies Act, 2013 ss. 391, 394
Judgment
CORAM : MR.JUSTICE K.M.MEHTA Date of decision: 20/03/2001 ORAL JUDGEMENT
1.(cid:9)The present Company Petition has been filed under Sec.391 read with Sec.394 of the Companies Act with a prayer that the Scheme of Compromise and/or Arrangement between Welspun India Limited, and its lenders, bankers, creditors and shareholders and the Petitioner Company i.e. Welspun Cotton Yarn Limited and its shareholders be sanctioned. The petitioner is the Transferee Company.
2.(cid:9)In Company Application No.13 of 2001 filed by the petitioner Company this Court passed order on 15.1.2001. Pursuant to the order of this Court, the meetings Equity Shareholders were dispensed with, in view of the written consent of all the Equity Shareholders. It was also observed in the said order that there are no secured or unsecured creditors of the Petitioner Company.
3.(cid:9)By order dated 26/02/2001, the present petition was admitted and notice was issued to the Central Government through the Regional Director, Department of Company Affairs. The Notice was also ordered to be published in two Newspapers. Pursuant to the same an affidavit of one Chandravadan C.Bhatt has been filed showing the publication of the notice in two Newspapers as directed and service of notice to the Regional Director.
4.(cid:9)Pursuant to the advertisements issued in the newspapers as directed, none has approached this Court with any objections whatsoever.
5.(cid:9)The Registrar of Companies by his letter dated
14.3.2001 addressed to the learned counsel of the Central Government has indicated that it has been decided that the petition may be left to be decided by this Court on merits. A copy of the letter is placed on record of this company petition by the learned counsel for the Central Government.
Operative part
6.(cid:9)On going through the scheme, it appears that the requirement of the provisions of section 391 to 394 of the Companies Act, 1956, are satisfied and there appears to be cogent grounds for accepting the Scheme of Compromise and/or Arrangement which is proposed. The Scheme is genuine and bonafide and in the interest of creditors and shareholders of the company. The Scheme is also fair and reasonable. The Scheme proposed in the company petition is hence accepted and accordingly the present petition stands allowed. It is further ordered that the spinning division of the Petitioner Company stands transferred to Welspun Cotton Yarn Limited as envisaged in the scheme. It is hereby ordered that the present Scheme shall be binding on all concerned including the petitioner Company.
7.(cid:9)The fees of learned Central Government Standing Counsel Mrs.P.J.Dawavala is quantified at Rs.2500/- in the present petition. (cid:9)The petition stands disposed of accordingly. (cid:9) (cid:9)(K.M. Mehta, J.) syed/ (cid:9) (cid:9)
Questions this judgment answers
What did the Court decide in this case?
The Court recorded the following disposition: present petition stands allowed
Which statutory provisions did this judgment involve?
Constitution of India; Companies Act, 2013 — ss. 391, 394.
Which court decided this case, and when?
Gujarat High Court, on 20 Mar 2001. The bench was K M MEHTA.
Precedent status how later indexed judgments have treated this case
No known negative treatment found in the Courts & Cases corpus.
This is a result about the indexed corpus, not a finding that the judgment remains good law. Coverage may be incomplete.