Disposed

ILandFS Broking Services Private Limited v. -

Bombay HC7 Mar 2014CSD/134/2014

Case brief

AI extract

What is this about?

This judgment dispensed with the procedure under Section 101(2) of the Companies Act, 1956 for a reduction of securities premium. The court noted the reduction was a mere book entry involving no financial outlay, no liability diminution, and no prejudice to creditors, thus exempting it from the standard creditor publication requirements.

What did the court decide?

Disposal of the summons for direction with the application to reduce capital and waive Section 101(2) procedure approved.

ILandFS Broking Services Private Limited Vs - — Company and Corporate | Bombay HC (2014)

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY

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ORDINARY ORIGINAL CIVIL JURISDICTION

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COMPANY SUMMONS FOR DIRECTION NO. 134 OF 2014

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In the matter of Companies Act, (1 of 1956); AND

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In the matter of Sections 78 and 100 to 104 of the Companies Act, 1956; AND

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In the matter of Reduction of Capital of IL&FS BROKING SERVICES PRIVATE LIMITED.

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IL&FS BROKING SERVICES PRIVATE } LIMITED a Company incorporated } under the Companies Act, 1956, } having its Registered Office at The } IL&FS Financial Centre, 3rd Floor, Plot } C – 22, G - Block, Bandra Kurla } Complex, Bandra (East), Mumbai - } 400051. } ………Applicant Company.

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Called summons for direction

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Mr. Rajesh Shah with Mr. Chandrakant Mhadeshwar i/b. Rajesh Shah & Co., Advocate for Applicant Coram: G. S. Patel, J. Date: 7^th March, 2014

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MINUTES OF THE ORDER

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UPON THE APPLICATION of the Applicant Company abovenamed by a Summons for Direction dated 4^th day of February, 2014 AND UPON HEARING Mr. Rajesh Shah of M/s. Rajesh Shah & Co., Advocates for the Applicant Company AND UPON READING the Affidavit of Mr. Sunil Bang, Company Secretary dated 4^th day of February, 2014 of the Applicant Company, in support of the Summons for Direction and Article 31 empowers the Applicant Company to reduce its share capital and Applicant Company having passed a Special Resolution in its Extra Ordinary General Meeting of

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its Equity Shareholders held on 22^nd Day of January, 2014 approving the Reduction of Securities Premium/Share Premium Account from Rs. 30,10,81,500 (Rupees Thirty Crore Ten Lakh Eighty One Thousand and Five Hundred Only) to Rs. Nil by setting off its Accumulated Losses in the Profit and Loss Account as of November 30, 2013 AND in view of the averments made in paragraph 15 inter alia stating therein that Reduction of Securities Premium/Share Premium Account do not involve any financial outlay/outgo on the part of the Applicant Company and is only in the nature of a book entry. Consequently, such Reduction will also not cause any prejudice to the Creditors of the Applicant Company and Reduction of Securities Premium/Share Premium Account does not involve either the diminution of any liability in respect of unpaid capital or the payment to any Shareholder of any paid-up capital nor is any call being waived, in view thereof the procedure prescribed under Section 101(2) of the Companies Act, 1956 is dispensed with.

ILandFS Broking Services Private Limited v. -

Case brief

What is this about?

What did the court decide?

ILandFS Broking Services Private Limited v. -

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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