Amalgamation ‑ Power to make representation to High Court in response to notice given to Central Government - Companies Law - No. 2/(29)/68‑CL-V,

Circular Letter : No. 2/(29)/68 ‑ CL-V, dated 11 ‑ 3 ‑ 1969. Subject:- Amalgamation ‑ Power to make representation to High Court in response to notice given to Central Government Section 391, read with section 10, provides that a proposed compromise or arrangement (a) between a company and its creditors or any class of them, or (b) between a company and its members or any class of them, requires, inter alia, sanction of the High Court concerned. Further under the provisions of section 394, if, in the case of an application to the court under section 391, it is shown that the compromise or arrangement has been proposed for the purposes of a scheme for reconstruction of any company or companies, or the amalgamation of any two or more companies, or that under the scheme the whole or any part of the undertaking, property or liabilities of any company concerned in the scheme is to be transferred to another company, the High Court could make an order in regard to any of the matters specified therein. Section 394A requires that a High Court shall give notice of every application made to it under section 391 or 394 to the Central Government and shall take into consideration the representations, if any, made to it by the Government before passing any order under any of these sections. This power, which was hitherto being exercised by the Company Law Board, has been delegated to the Regional Directors, Company Law Board, vide Notification No. GSR 416, dated 22‑2‑1969.