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2019 (8) TMI 1737 - Tri - Companies LawReduction of its share capital - Section 66 of the Companies Act, 2013 read with National Company Law Tribunal (Procedure for Reduction of Share Capital of the Company) Rules, 2016 - HELD THAT:- It is observed that while objections have not been received from Creditors, neither has any consent affidavits on their behalf been produced. In Re Panruti lndustrial Co. Private Ltd, [1959 (9) TMI 59 - MADRAS HIGH COURT], it was held that the Court’s power to sanction any reduction is to be determined by whether such reduction is fair and equitable. It is the bounden duty of the Tribunal to ensure that no injustice is meted out to any class of shareholders and even to creditors. Section 52 provides utilisation of security premium Account for premium payable on redemption of redeemable preference shares or of any debentures of the company or for the purchase of its own shares or other securities under section 68 of the Companies Act, 2013 - The present petition moreover, also involves selective reduction in equity share capital to a particular group involving non-promoter shareholders and bring the petitioner company as wholly owned subsidiary of its current holding company and also return excess of capital to them. This is an arrangement between the company and shareholders or a class of them and hence it is also not covered under Section 66. The relief as sought in the instant Company Petition under Section 66 of the Companies Act, 2013 is not covered under this Section - the instant case may be covered under Sections 230232 of the Companies Act, 2013, wherein compromise or arrangement between the Company and its creditors or any class of them or between a Company and its members or any class of them is permissible - Petition dismissed.
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