Allowed

Aris International Limited v. -

Bombay HC10 Oct 2014CSD/783/2014

Case brief

AI extract

What is this about?

The High Court granted a summons for direction to Aris International Limited concerning its application to reduce paid-up share capital and set off accumulated losses. The court held that since there are no secured creditors and unsecured creditors have consented, Section 101(2) of the Companies Act, 1956 is dispensed with, rendering court confirmation unnecessary.

What did the court decide?

Dispensed with the provisions of Section 101(2) of the Companies Act, 1956 and directed that court confirmation is not required for the proposed reduction of share capital.

Aris International 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.783 OF 2014.

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In the matter of the Companies Act 1 of 1956); AND In the matter of Sections 100 to 104 of the Companies Act, 1956; AND

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In the matter of Reduction of Share Capital of Aris International Limited.

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ARIS INTERNATIONAL LIMITED, a ) company incorporated under the ) Companies Act, 1956 having its ) registered office at 129 B, Ansa ) Industrial Estate, Saki Vihar, Saki ) Naka, Andheri (East), Mumbai 400072 ) …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

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Coram: S. J. Kathawalla, J

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Date: 10th October, 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 25th September, 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. Ramesh Mishra, Director, dated 25th September, 2014 of the Applicant Company, in support of the Summons for Direction and Article 54 of Article of Association of the

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Applicant Company authorize to reduce its share capital by Special Resolution and Applicant Company having passed a Special Resolution in its Extra Ordinary General Meeting of its Equity Shareholders held on 19th July, 2014 proposing to reduce that Paid-up Share Capital of the Company shall stand reduced from Rs. 46,201,000/-(Rupees Four Crore Sixty two Lacs One Thousand Only) divided into 4,620,100 (Forty six Lacs twenty Thousand one hundred) fully paid up Equity Shares of Rs. 10/- (Rupees Ten Only), to Rs. 4,620,100 (Forty six Lacs twenty Thousand one hundred only) divided into 462,010 (Four Lacs Sixty two Thousand Ten) Equity Shares of Rs. 10/- (Ten only) each and the accumulated losses of Rs. 41,589,000/(Rupees Four Crore fifteen Lacs eighty-nine Thousand Only) of the Company out of total accumulated Loss of Rs. 45,435,966/- (Rupees Four Crore fifty four Lacs Thirty five Thousand Nine hundred sixty-six Only) to be set off against the paid up capital of the Company of Rs.46,201,000/- (Rupees Four Crore Sixty two Lacs One Thousand Only) AND in view of the averments made in paragraphs 15, 16 and 17 of the affidavit interalia stated

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that there are no secured creditors of the Applicant Company and the consent given by the all the its unsecured creditors of the Applicant Company to the proposed reduction and that the reduction of the Share Capital 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 and Creditors of the Applicant Company are also in no way affected by the proposed reduction of the Share Capital Account as there is no reduction in the amount payable to any of the Creditors, no compromise or arrangement is contemplated with the

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Creditors. In view thereof the provisions of and the procedure prescribed under Section 101(2) of the Companies Act, 1956 is dispensed with.

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(S. J. Kathawalla, J.)

Aris International Limited v. -

Case brief

What is this about?

What did the court decide?

Aris International Limited v. -

Case brief

What is this about?

What did the court decide?

What the court decided

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