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2021 (9) TMI 411 - AT - Companies LawBusiness transfer agreement by way of Slump Exchange - Section 421 of the Companies Act, 2013 - HELD THAT:- Chapter XV of the Act – Compromises, Arrangements and Amalgamations are covered by Section 230 -240 of the Act. The related regulation is the Companies (Compromises, Arrangements and Amalgamations) Rules 2016 as amended from time to time. The direction that the part –III & IV of the creditors of the Company shall maintain status quo about their debt, not to classify loan amount as NPA, till further orders with respect to their contractual terms, dues, claims and rights and stopping from taking coercive steps including reporting in any form under Section 230 of the Act R/w 11 of the NCLT Rules, 2016 is not in order. It is because the creditors themselves have to get it approved from 75% of the value of creditors and naturally, if they are not in favour of the scheme of arrangement, it will be disapproved - Even if the Company debt is under NPA and even if the Company is under Liquidation, it can always invoke Chapter-XV of the Act through Scheme of Arrangement to come out of the situation. There is no bar in merging unhealthy company with healthy company to come over the crisis. There was no need perhaps to pass this specific directions. Appeal disposed off.
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