The Court held that schemes of amalgamation under sections 391 and 394 of the Companies Act, 1956 concerning a company declared as a sick industrial company by BIFR cannot be sanctioned. Consequently, the petitions and applications were dismissed as not maintainable.
Present company petitions and company applications dismissed with no order as to costs.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
(1) Company Petition No.363 of 2006
with
(2) Company application No.367 of 2007
with
(3) Company Petition No.401 of 2006
with
Company application No.614 of 2006
and
Company Application No.953 of 2006.
In the matter of scheme of
Amalgamation of Kadakia
Alkalies and Chemicals
Ashok Organic Industries Ltd. ..Petitioners
Mr.N.C.Parekh i/b M.Hiralal and Co. for petitioners.
Mr.C.J.Joy i/b Mr.S.K.Mohopatra for R.D.
Mr.Pranav Desai i/b U.K.Ambalal and Co. for intervenor.
CORAM: S.C.DHARMADHIKARIJ.
3rd July 2008
P.C.
1. In view of the settled legal position that no scheme
of amalgamation under sections 391 and 394 of the
Companies Act, 1956 can be sanctioned by this Court if the
same concerns the company which is declared as sick
industrial company by BIFR, the present company petitions
and the company applications are not maintainable and they
are accordingly dismissed with no order as to costs.
(S.C.DHARMADHIKARI J.)
2 issues framed by the court
Whether a scheme of amalgamation of a company declared as a sick industrial company by BIFR is maintainable under sections 391 and 394 of the Companies Act, 1956.
Whether the present company petitions and applications are maintainable given the sick status of the company.
1 provisions across 1 enactments
Ashok Organic Industries Ltd.
R.D.
Intervenor
S.C. Dharmadikari J.
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court