Srm Energy Limited Vs
Case brief
What is this about?
A scheme transferring a power division to a wholly owned subsidiary was sanctioned over objections from shareholders of the majority shareholder company. The court declined to adjudicate their shareholding dispute and accepted protective notice commitments concerning the subsidiary.
What did the court decide?
Scheme of arrangement sanctioned; both company scheme petitions made absolute in terms of prayer clauses (a) and (c).
What the court decided
flcsp795-796-3.9.13.sxw
spb/
IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION
COMPANY SCHEME PETITION NO. 795 OF 2012 CONNECTED WITH COMPANY SUMMONS FOR DIRECTION NO. 621 OF 2012
In the matter of Sections 391 to 394 of the Companies Act, 1956;
And
In the matter of the Scheme of Arrangement between
SRM Energy Limited (“Demerged Company”)
and
SRM Energy Tamilnadu Private Limited (“Resulting Company”) And
Their respective Shareholders.
SRM Energy Limited
Issues for consideration
2 issues framed by the court
Could disputes over dilution of shareholdings in the majority shareholder company be adjudicated in the scheme-sanction proceedings?
Was the proposed transfer of the power division to a wholly owned subsidiary fair, reasonable and consistent with law and public policy?
Parties & counsel
- petitioner
SRM Energy Limited
- petitioner
SRM Energy Tamilnadu Private Limited
- other
Shoukat Rai Malhotra
- other
Meenakshi Malhotra
Coram
Case details
As recorded by the court registry
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