2009 (9) TMI 920 - HC - Companies Law

Summary

The Gujarat High Court, in Appeals under Section 483 of the Companies Act, 1956, reviewed a common order sanctioning a scheme of amalgamation between Balaji Cinevision India Pvt. Ltd. and Balaji Electrical Insulators Pvt. Ltd. The Company Judge had approved the scheme but modified the proposed Appointed Date from 1st April 2008 to 1st April 2009. The appellants contended that while the Company Court has discretion to alter the Appointed Date, such discretion must be exercised with cogent reasons, which were absent here. The Court agreed, emphasizing that "the learned Company Judge had no reason to modify the Appointed Date" and that such alteration would "render all calculations awry" and have financial implications.Accordingly, the High Court allowed the appeals, set aside the modification of the Appointed Date, and sanctioned the scheme of amalgamation as originally proposed.