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2018 (8) TMI 1613 - AT - Companies LawScheme of Arrangement - reduction of Share Capital - Held that:- Tribunal referred to Section 66, being the specific provision for rejecting the application under Section 230 as the Scheme and Arrangement related to reduction of share capital. From explanation below Section 230, it will be evident that for passing an order under Section 230 to compromise or make arrangements with the creditors and the members, the provision of Section 66 shall not apply for reduction of share capital. Such order can be passed by the Tribunal under Section 230 of the Act. In view of the aforesaid provisions, we hold that the Tribunal failed to notice the ‘Explanation’ below Section 230, which makes it clear that even for reduction of share capital effected in pursuance of the order of the Tribunal under Section 230, the provision of Section 66 shall not apply. Having held that the Tribunal failed to notice the aforesaid observations, we have no other option but to set aside the order dated 8th December, 2017 passed in CA (CAA)-105(ND)/2017 which is accordingly set aside. The case is remitted to the Tribunal to decide the application under Section 230 in accordance with law after notice and hearing the parties.
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