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2015 (11) TMI 384 - HC - Companies LawReduction of paid up share capital seeked - Held that:- As stated in the petition and as seen from the financial statements filed, the decision taken to have a true reflection of the financial position of the company is purely a commercial decision. Considering the fact that such move has been approved by the overwhelming majority of the shareholders, apart from the facts that such reduction does not involve the diminution of any liability in respect of unpaid share capital or the payment to any shareholder of any paid-up capital, and there is no outflow of funds or assets from the petitioner or any reduction in the amount payable to any of the creditors and the reduction will not affect the normal operations of the petitioner or its ability to honour its commitment and to pay its debts in the ordinary course of business, this Court does not find any impediment in granting the reliefs prayed for herein. In the light of the above said facts, the procedure stipulated in Section 101(2) and (3) of the Companies Act, 1956, for the settlement of list of creditors will not apply. The prayers sought for in this petition are granted and the petition is allowed. A certified copy of the order including the minutes as approved be delivered to the Registrar of Companies within twenty one days and the notice of the registration order by the Registrar of Companies and of the said minutes as approved by this Court be published in one issue of English daily ''The New Indian Express'' and also in one issue of Tamil Daily ''Dinamani'' within four weeks from the date of receipt of copy of the order. Direction to petitioner company to pay a sum of ₹ 5,000/- (Rupees five thousand only) towards fee to the Central Government Counsel for Regional Director.
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