High Court Karnataka High Court

Batliboi Spm Private Limited vs Nil on 2 February, 2009

Karnataka High Court
Batliboi Spm Private Limited vs Nil on 2 February, 2009
Author: Mohan Shantanagoudar


‘ 3% (Z:c;mpa11y §11§::3:4″g:§a:§I?3:@{i umifir u h ‘V

.,1Am§§ *

:94 THE 915% smug? as: KAQNATAKA A? BA¥a§£§«:%i.GRE: : H.

i’;>2’§T§D THI5 THE 2% my GF FEBRUéR3%4,:’:2OC§f9:: { A

agmpzra
THE H£Z3N’B§.€ MRSUSTICE ;iA€3%§Ar4\s:~%§§:~2:¥,e;:s~3.é:§{2§.;&§.§%
cawazazv 9§TzT::§:§;%:~ac2Afi3s22<jo%a %
BETE¥EE§§'$:. " ' 1. 1' V
Ba€1ib<3iSPM Priwzitet L§;;;;~:€;i. 'V

Tbs Cozzxpaxzjcs Acfzlf . U ..

Havifig ifs Rétg-:’g.;’~-£I§§*:’iia:iz: at–ff, ” _ ”

Piaf N<).24, fxfiééin .. V M
V€erasan€i1aTAi£:duéif:'i¢ ?..rfia.

39$ Eihzi, }insta:~’V_:%oad.% ” . _

8anga1<§rt:~'S{3G 1_C;<:x_'-._ " __ ,. Tf'§i'I'ITH')NE:R

{B}; Sn} T.P;§'§5§%cka%1a1;€_§ fa?' Sri P.S.Manj1;:1§ath$ Adv. ,3

,. RESPGEDENT

V.Ja3:a1"m ffiii' €}.L.

,3;-i ‘Ei.§3.i3?3:1ftasic1daiah§ case for R063}

his cempaxiy pfitfiierx is filed lllidéfi’ Sections 391 to

6f the. Companias Act, .1956, gxzaying that far the mass0::1s
stated therein this H0n”bIe Cmzrt may he ggaleagaé ta} gamcfien

.2-

this &:I::&mtt of Amaigamatiofi 6? the _§€§§ti0ii6I'”COfi3,f#€§3f13?,
Bafiiboi SPM Privatée Limitmi :°i}iZI3,1€fX1i1″€’;-N to the }Z>€1ZiLi§393;1_Ss’}

as ta ‘Qt birztiiazg 3:1 alt (m:<:cm»::»:1 isxckziling i}}€_.fL$"€i?'i;i..'};1}5::}%f~" ..
ttompany itself, the '§':{'a.I1sfe1~e«& coxnpaxajg" anti t'?m~:_iIf_1v::$p~::'g::-i:iv'c:._._ .

3}T131'£h()1{§€§?$ anti crecfiitera anti Etc.

Thig crampmzy patitign tscymistxgf mifzrij ;;r(i§::':é".}j' 'fi;.iis"d*ay

the Cmm: made that foI}.Wing:– A s

0 R. D
T.’:1:¥-is patiiiaii is V ~-E:§;i:3’fi:Sf€r’–[g éG’mpa:_i§
umier Sectiims “£0 Fxflfii, E56,
{,6 gum: %sg:f;¢{:§:;V :;~;:§f x the Schfima 9:5
fi;:113}ga1;:at.;3_:1*ii_44_” J Rafi’: tbs:

‘§’1″a:”;sf<:I'€e Ciégézg-§:sa§';§: »~ -Eatlibei' L§I3'ii'§;fi{§.

2. ‘”§”3.1:::-Vpet.%*€jc§:;«:%i*«Tra:1sf-semi’ Cfifiipafly’ was

= ,ir;<:0;r§§.§;:::%§§ csfi’ ~5,§{,?Ti?* cf Qcteber, 1942 ilfldfir the

g:g~.:s¢:s;e:V:js% §:;f ?:he Mys<}1*<~: campames act, mag, The

:3§:3m e s:3f'jggnéfifiarmrucsmpany wafi ciiafigeci ta Bafiibai

'VV_ E::g:§m"':«::g {garzgaiare} Privaté Limitaci, 03:1 1£%;8.1Q84.

'~ {'}113c:é'~«a_gai:1 pursuam; in the }3I°fiViS?i{}iT:S af thfi C,-mnpanies

V?

Act, i’§E=€:», {£16 I’}~i»”:iII}E§ of ‘§;’I3é: §3€’§§tiC*§}€I”mi3QEI}§}&f}j€ .?;as

claangszti to Batfibfii S§’M Private Liziqiied-

“I”}16 R$gis’i;&1*<e:d. Qfiiefi £3? tizurs }}f<§f;?¥13I1iG}i1€iI*i'3{:"§.:§§.1§§'r3;:'{:1:§;?A31$! '4

giiuatfié at Piut. No.24, Hi §v'§ai'1'3a, Vfifiitafigizfiifé~E:i:ié;?;:§f:i:7f§€&; '

Araa, 19 }{M, B9313: Raa{i,":;B'a3.§;ga.V}%3i.i%'~g§6i§

$~€§€:'s1€:3 $1' Kafilataka.

3. The Eiaifi t,§%_ f-5.3%” ‘3§€j’i.§€’$§€;;§§E5r~’§’;*a:13farm
€3(:am§3a11y as s§e§i”:j;§iE i3*§i_th~:: ‘§?§fi.f21§1″éfi€ifi§B :3? Afifififiiafififi
am :3 {3.’.–H:}f3{3}”{ b’i1$i§§%E:SS in
iii”i8§3h§11§'”?’:Z”‘f;’7.{}§:’. 311:3; accaassaries and
:0 ii}, an ?:mSi:3€;ss €it§1€:;:* far
I’€8;(§},? €31′ znashinsry, 1″£.’:€i”a3$, copper,

i;*v:>§:g é gjsiesai ar;{::1.. __ oVthei” base memizs, II1€3I'()31i§i1€

.,4;;@:zni::i@{iiti€s, ‘Vwams, p:’miu::’€.$, c@§:.t<3n, yam},

5pi¢..:{i;::V«vsi}fx_, jute, iiziesri, Ezeagian ami gmizaies, gcaéd,

siivétii,' fiiaéiintzgiii, savazigzs anti}; Q1316? (icing, Sh8I'€S,

stéucks, .–s:i€%-,~E;i"1§'ui"es, bends, 103313, etc; :6 acquire 313%

\/D

mi:

Séciifé ixiembarsship, Sfifii. er pziviiéigé, {timer E31 225.6 Fgiéziiiéi

0;? {£396 Cmiiyaxly at its R{3n1i§:6s 0:’ izezmziizttéis, 4′ :”3:”§5:;§j~f:f’ ..

313:; as-s€:«::ia§;i3§1, €:x:::}13:1gf~*;, markfii. GE’ i;1i§£’-.%,:1,§’%’:§s:: iii-«

iiisiia ax” any pm?) cf 13% ifiéafiii, in iii:-i:ii§3:*’zVV fsj_3;i51j:_,

piece gaads, geki, sikvsr, 1:«§ati,:_}§.i1::1, e:-f:t.<§;V. '$2.0 <29 ézfifii

iffiffiéii bU;SiI1€SS in d'1fi'er*6:1f* ..}{'é:3d$ '(sf uI112;33I'C}7£:fii'i{3iS(i,

C§m§1}0{§i§§€S and ' i21c'i:.1si;:j; and
agricigétufe; tat} <iStfabii§s%1€fa1'§£§ :".;3§.grVéé§1(:§.6s {}f and
bfafiches any fiafi. cf the
W0i'i<:} fgfggrze. 3:' '£136 cafiapany" or

far ihéyv p1_3:'¢} ':a:*s;«:*:,_V axchaazige eifizcjr far reaciy

<3;eiiv€I"§,:- 'afssr ~ i"11'€:2;.i1'%:i. ziéiéifvéry, Csf any m%3m}1a§1«:%§s€,

C0§Qfi3¥3é§fiES, ~.g§§«i:séS,. Waits, :nai€:.1"i9.i$, gzaracizzcfi-3,

pI*c:§'a1;;{3?£'s,. ,2f;1'-%:'is::i&s, :":t-::; 1143 st:-a:'z'jy' an b'£iSiZ€'}fi23S as

iL2f:€ié,1*:s;':'§€§7::j:"fé3,'~iaésziiid prapriétara, buiidérg, CQi1'£I'3€$Qi"S,

. :ni::%%:'rs,"— w;2§'ie:'s by Ram}, Watar 311$ air, C}'ii":i1"§:'fii'%.i"'§E'S,

–.§z”§:%e:g_st1*ié:}ists, gimiers, gressers, gackersg, 016331523,

§};§ii:::ei*s, waawszrs, béeaehers, (§§fE§’S, £33; £9 act as

V,”/_>

E2. The 8.CC€3’i1§’}’€S sf tbs ;3eti$:i0§;er-‘1’;**.»333s§3:1fi)r

iibmpafiy 31% stated is have bees”: axidited ‘z–:1§;e–w

3}..3.2£f}{}’?’ . Thaw acc§’LH:’ts am éiuly apprav:::§:i’ A ‘

sharehmiiers of tha ‘1’i”a.:1sf€:’v:::;’ {:GQ’i§£1ii§3. 33: ‘£u§’;£? “I,i3’s3%::%»iz”:’g

ht:-id QB. 2{}.3.2€3{3?. “F}1e A;1{1it::;15s_f

Dimctars’ rapert am pr<3d1::::é::i;i ""'–ai $3x.§i%3§:§}}

fjfififlfifisii.


6. The  igiiziited was
'f{}i'I§1€i'}§"    and (fis:«mpa£1y
§1";'ivz21te  an 6. :..2.12;41 as a

Private “m§e;?Q;~:r fhfi pmvisiona 01” ‘(ha

{:C3EE§§}&¥I}i€iS; L,%.<%:'i., }§}13.._ 'F.§i:1rs11ar:t. ta '?I1'i*f§ §3E"0V§Si(}I1S of

" '~ 'Sectidfi £;}i'*{".%é"'<.1',.<;:3:;1pa§*;ie*5:« Act, 1936, {ha name 9f the

–VT1″§:i:3fj€1*%;é=Cizsfaifganfg was chaiiged £0 Hamfia §I”§{i?.iS’§I’§8§

Privatfi Léznfied an 28.1}. 29m. we

, ‘7?YaI}S§E<i"{§i'$ C()§i}§38Ci'i'_§? wars ihfiffiafifil' mnverfhed inie 3.

Limiteé; Campafly an '28.3.}.19'?G. Qfiiifi again

355:: mama fif {E15 Transféree i';-m11par:§;' was cixanged ta

W

Bafléixzi E1'1gi31€si:r§:3,g {3ampai':§s Ejiiiiiifiii GEE 28.1.1983,
szzé €.h€1'€a§'€:$r ii. was changed {.9 Bafiiiiifi 55%; £;"3€;_=:§::;;»§~§i1};f'

Limiied on £38. 33484' QBCE again ii was {:k%.a:iiigé{§'— .

Bafliboi Lixiiiififi. 'I'3':é3 éiértificate (;i'"é:3iia3?:g<;?:A «:_i a:¥j13 W§1§; ;

issued 9:: 3.4. 3996': as per Exlfziéait-3,1},

Thfi Rssgistered 0333:: if ifiinpariy
is !5i'%'.u:~1'tes:i at Bharai "§-5'1§:; 0::", 3:64, Baxixbay
Samaehas" Marg 'F.'Cfrt, iiié} £1216 Stat-:3 sf
?v§aha1~¢;é!~S}'§\'{,5A§\\ 4' I V ' ' …. ..

'?. {if this '}'I'a§:Sf€r€€
<7,ompai;=.;»; 33 1:13 'Rs. 30,3 1,:::<3,<:::3<3,u iiviczad .

' V ' u L__m__MA___m_m_W,M___M_w__W__w_WN_fl V1r–~
'p/Sfiifi 2,?i),213,<f}G{3' eq:1l;§:"'«.Lsha1*e$ 0? 1435.3} – Each anii

16,5£"}_;7i:}{}i3 preffsztgrzce f:"5hEéI'€S {Bf Rs. EGG/- 6302*}. The

i$s'a€§i, anfi. §f~?:.i€j§-¥..'z§ ahare capitai of the
'fra:§s;fe:%5eeé'%'§;_ mmprismg €25
:#x= i x;. 49%? V” “a”

1,35,g1’275?I__ {2,?%,£32,f».5f{}’.€q11it’§; sharss af R$.;Z’}f~ flack, 6,{f}8,48%3, ?
eqt;-ity 5h’a’.il’€£$ »-‘«. V ‘ ~~
“R_.$’.«.3-0.:!A’*- 4: * 1% nan–?’§V&rt€& into 2,76,20,000 equity shares of
_ V._ _ӣace vafގ of as,5/- each as on 31.12.2997.

at we ‘$222235; \/5

$6«\§’€«’\c.¢5 deletedt

\Wr.€.( CQx_;__,’,.q.,

¢QaJ»«é? :33′-3–.2.c3o’i’.

vg//.

gm,

graéiicts, Iaafiieiy, Hlailhiilfi €;<:~0§s <:a£;'i':£i1g§, textiie

macthifiéry anci textiie ai:'~har:r.:i§ing &q";1i§I:§e:;t,

instiustriai aiI'€f20fl{'}i§iOfiiI1g eqtzipmeni. ii; ;"é:%3;é$§;}–. %

8§t3E1Ci{iS af machiné iiaifis and §16){§;Li{1§~"Ei1é;{;}j1iTEé{Ei'§r' ::f$f

€}V€:£'S$aS n3a:11:fae::i13:*€I*s/ssssppiiefijs.

Capiss af fiat: a'udii0rS'-.L.;'ap9:1 a.:§.j:€i'».t.§i:_fi i"}§%éc€.{3rs' V'

1's::p0r'i as 0:: 13 1.3.2G€§?~..§.Yfi {.0 {E143
peiiiima, whi<:}"; révaa}. Cfimpany has
I:3ainiaiz1&<:i fof Jas mqziired by

£07 gééiiiiigner, this aquitjg 5s%1a:'ss
cf the aiscs E35-tat} 611 the Bmnbay

St.v::«€VE«_:_'vE:is:g}1':".a~A»'-:§:'ga Vja;:3{i'~._€sh¢"»LVNa%i0naE Stock E-"jxcrhange. '$26

S~tQckAV EX<:?::a32g& vida its 15:23:" ziatfié 9.4.208?

}'i=};;s" ma abjfifitiaii 'ta tha ]3¢I"{3}'_)vG'.:3€i'i 3€3h€l"i1¥:3 cu

P

fiiafiarzal S'{.G<.":}{ Exchangfi viatie its letmr

'V'-$3.:-:<d" ,1§Zi.4.2GO? has ais-<3 accarfiaé its no 0¥3j€:c'ti0n to

W

REE):

this ;3z*0pc:.«&;e{i SC-1.”i€E}.”ifE {if Afiialgatnation, as is ».ffi:»::1

EXE1ibi¥;s«L and M, prcsduccaci dang ‘xiii’: {he

11. The Baard sf Bi:’£:{:$fé§9 5″‘:;§T_ 7’:he.»«

campany in i”‘i::; Iiififififig halt} ii}.

appravad the Schfime Qf the
asfiats am} ‘the }ia¥3i1ifi¢¥3J_0f ¢.é»§fifi}fii1}’ xxziii
starid vésitséi infihe The Baaréi 0f
Birecrtors 0? its nmfitirzg heifi
an 14. ‘F%’g:}}’;):}E”{}g’é{i the Scheme 0f

_ 32. ;#’%::{:{:3?{1i;i1gA’~§;€;:”t}ie petiiitsiifiz’, the a:;1a}ga1;:1at§01’1

” ‘~ _ zviéifi :*;,.=°+.$L*g}f*£’. iii” “hi:-€:tei’ i1”;i.t:§*r:a} €{Z{3§10Ifli€:’-S 3:13}: as

_ ‘éiiiirzizaistrative: Cfifiifi, fixcisaa {if aifscfive

ct:~,:: ‘a2’r,a1, .$fziic:::i*§f$’£i<: ape:{'at;i’i’éa:1 in $€Z”‘§’§.(“:€f as 3 §*:%s:,1i€.

0%’ the ‘§I’3§3Sfi’€T:3″‘ 0:’ 8:13 s.23’3ci€1″*£aki:1gs €37? fixa __’i’}*£i:2= :s%f¢:;:::’

C{;:;”:1§aa:”:y £0 “i;}’2& Tfailfiffiffif; Ci.::z:3pa31y.

13. Thfi pe:tit39zier~c0mpéz,f1}? ma;

1Zii§~g§C’éi€E-ii is {:{§fi’£»’€E”1-8 thé: :§i=T;:aui€;%.§;1g–‘i)§’ §;:e::_
‘i_iI£}S€3Ci_§1’f3iii {,’3’®:;%i'{€;’:’:=; fl1f:’: fzliiig
CA.E\_%’i:>.4é;’2i}{}8 ‘ figs Ce£§1pai’ii€s
119%.. This Cfi1:;’_;”‘;:}_§; £38 a::.~r{i€::*e4:i
h0k§.§§3g of -..,Qf V fsha§’~€:hGEs:iaI’ss
Seassureai.a.ri§.2%§i’1$é:$;§L&I%éi £33’: §8.i3.2€}G$ 3:313 in
¢<}:::piiié2;:<::e" csrdea', iiéaa 'ifzaiizziafi

aggxjizktsrzé" 3}}? .§§§i&: presideii am} e::m';é§u{:?;€{§ the

me§i:%€:g1gS' {if .v.'j¢§37&£i'%;:§,r shafiihaidfirfi, $€C'£}.'£'§é and

azzisasuréé '£:ré<§_:';itG1's 9%' {ha pfiiifierifirucfimgkaiiy" at £8.88

a;':13;';" }Gf.–§";1i ?=a5.m. aiifi W35 am. r'asp@{:'%:§;va}§; an

E3"; the t:~;3.§;»:i £n&:ii.i§3gs the Sifhiifififit, 'Vida

g'§;§=:hi%:it~§$E, is apgmvési "€33; the equiiy sharfiheiders,

$é,g{:':;mii and uiisésrzturfici =r:::'e<;§§i:0x'S {if 316 p€ti'£.ieI161'~

Y"

44″

:”:<3:i3::§an§;. The. s::Eiai:':3;1a§1 9%' 'L116 saiié H:f€:é'::1:iu'1g

';'vi:".P.E€E.§zi'a:«_§L1§1";{§a1" has fiifzd his I'€§0'i'§L as

{:2 this pet:ii:i0:1.

1%. It is rfikivazii: ta neis u€;§;”14:’§’.

{1e:3′:111::a;1§ had 3139 app:’0ach{“:§T”EE1e Chart, V

withiiz whase juI’i’z§dii5’i~é.e§I1, ‘éi;%*iie”‘{;1;:«§; ‘ tijié — .:Es pmduceci afiibiig wéih.

€Ci?x.E\§€}_,23f _ :E~{»§i4zt5ié’€§:’, Copy 0f the sssiiii Gram’ is 3136

‘V V’ .,f?73i’C¥{i{i{E(i€i the ‘Ci{3’L’z£”E izjséay aiefig ‘ax:-‘i:%1 22 Iflfilfli},

. ..f§3:’ the petifianar.

fiégeffliiig is the pe:%’;iiTi0:2€1*«company, this 333163116

..x§;ri;i}—._§3a Vii: {fie ii”1?.€i’fiSi (sf thfif jpetiiiaizfirmcerzipariy and 3.11

* {Em Cfifiiififfifié.

W

miszaééfi. Thés {3m*€. 1:232 an Ctffifil”

~ dgafiggé. ;:s€:i’mit.€:ed iiiie peiizimier {:3 crr€«:’s: L316

u ” in the Silhfifiiéf arid this 333113 is smtaqi ta
.1. iiané. E§<:<:e§;'{, £316 saiii abjétctizan, Iii} athfii'

A VT "'e€%::§§~c€é<3:": is raisesci by tlhs Regisfias" sf éliamparxéées.

xii»

The {3fi§'1i:*ai {:}{3V€Z"i3Ii1€§;1i, comra 'maxi Ra;~f*s$1'ar of

{3G:::pa:a1i<~;:~:. anszi 5.1135 Ofiiciai Li{1L'1§{§a§;€)i' _j;=:<_;f»__€ii'i:_":%.i¢ Qf

{ha peiziiiarz.

Tkzfi C)’f§’icia} Liiguiaiateéi §f:a $: §’i{:>~ _V”Q§}§$C3§Qi_fi”T-.feI’

sa1″1~::ii::21′:§ng the 1; “§e5g’3tr3:’ af
{fcsmfjaxzies 3553393118 03”: the
gffiliiiii. 333$ vaiue:-: Sf fiié
V ~».

ikffiii: ” Saici éiefeéi, fhii p€ti'{§%I:{::r-

cuinpézggéé ai§§;§..§*€G.’E3f 26:99 ¥.:£fi’::*;’*£~ §’§1.’§i§ {;:cn.1r€’. far

F/>

,;,§,,

‘i’h§a~; £31315′: aim <§':r€<:"i:»€;d €:i1& pr:';:.ii:i{:sI'1t:r '::;:3''';g:=§;;'3.1i;§.téé'i::_ '4

{ha Zi{}'Ei{:€ {if the peti$;i{}m3I*i1'1 'rm Hi:1d33' _{§§:1,§3'i$§1–.§ai§y}V'"'

:3_§'2<.i 'szzmyukfha Kai*na€aka"=__ :{§§fafn£2:a¥:§a;"— 'xii;-:=%if_£ij£:};, .'

zzewgpapers, 3a3*1gal{3:1-3 €{iifi€§1},_ s?'xct:€§.§9tiii1'1gi*3,;'_V;pa:.§3€;:'M

p'zib§iCa?.ié3:";s W+a3'€: fakem amt. \ §3€%iE;§éa:§ér. this
{£3135 the abjectiazks are

13"}. As €§'i€'A'§fi}TiSii1{fiS'§;–{§:f :£';;?;fi%%§€'3f%i'w'I§'3§1Sf€ffi€
Cfiifijififfifiis ¥:s:s e;%*;;f:–:s':e"_:'1'vV::"«':':V»efi1€::* 8316 3:; the
am aEga2;f3,a::i§§'i.V ii érxiernai «&:{::me:11ie'a
Siiilh %;§: "a'§;§:;;%:2f{3'tr2:ii2:€ s:€:$iis, axcisfi {sf

effficiiva 4:§i:a_1:i::"{:3;,V" 5521"; ':%g'1';.::;:_%{: a§::$1'atia3'3a§ a<:iva:1'*:ag€:§§’g:s:*¢:}€iz::_ct§vi%§v af the cambimzzi ffififlsiiffiififi, 3%:-3.,

;’§;4;::%é*é’–.V;_:«3§£*%:;§zi?:L;–sié:a9j£3: Whfiil 3}} the §&L1rez§ <3-i"ee:%.:£t.£;:'5 arid

j::I:S€<§u,:*%:{i %::r&§iiC;i"s am': §i§";;€i aha ""62 §;'1i3§€§i5'i§'S wkaa were

1.}3i*éSé:i2f;t in ihfi.’ fizeefizzg Eiaver EEG Qbgécéifiii fax’ §i§§}f'{}ViE”ig

‘ -“i:}:1’:.f: 832183126, théfi C031? {if the

.13-

16. As the shareholders have approved the

Scheme, it is not open to this Court to sit as’ a

appeal and decide sitting in judgment qvere’ ‘4

commercial wisdom of the shareholders. 3 ‘

the following order is made»

The Scheme of eide.’
sanctioned, so as to he bi;;di11g”bVf.1i.: ef1aIei”1<;1ders
and creditors of Iransrexfig
The 'I'ransfero1j« 'erimout there
being an V

shall be filed before

the Regisu-ax: cf thirty days from the

date ofgreceipté xof-'» ofifiee.

‘ ‘petition is died of accordingly.

Sef-:2
Iud§5