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2018 (9) TMI 1967 - NATIONAL COMPANY LAW TRIBUNAL — PRINCIPAL BENCHReduction of Share Capital - Notification Nos. G. S. R. 1119(E) - HELD THAT:- There is no adverse material available on record which goes against the relief sought for by the petitioner-company seeking proposed reduction of share capital nor it will prejudicially affect the interest of any shareholder or creditor nor it will have any adverse effect on public at large. Further, the accounting treatment, as proposed by the company for such reduction of the share capital is in conformity with the accounting standards specified in section 133 and other provisions of the Companies Act, 2013. Hence, it may be seen that the petitioner-company has duly complied with all statutory requirements pursuant to the direction of the Tribunal and filed necessary affidavit of undertaking before this Tribunal. In the matter of HINDUSTHAN COMMERCIAL BANK LTD. VERSUS HINDUSTHAN GENERAL ELECTRICAL CORPN. [1959 (8) TMI 22 - HIGH COURT OF CALCUTTA], the Calcutta High Court held that the question of reducing capital is a domestic affair to be decided by the majority. The court further held that the Companies Act, 1956 leaves it to the company to decide for itself the extent and mode of reduction and application of the moneys thereby. This is, however, subject to the confirmation of the court, which is required for safeguarding the interests of creditors and minority shareholders and seeing that it is fair, just and reasonable. The prescribed statutory procedure have been duly followed with the approval of the members and creditor of the company and that no objection has been received against the proposed reduction and therefore proposed reduction can be confirmed by passing order in terms of rule 6 of the Rules - Registrar of Companies shall issue a certificate of Registration of Order and Minute in Form RSC-7 of the National Company Law Tribunal (Procedure for Reduction of Share Capital of Company) Rules, 2016.
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