{"id":104249,"date":"2010-03-12T00:00:00","date_gmt":"2010-03-11T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/welspun-vs-unknown-on-12-march-2010"},"modified":"2015-09-03T07:37:26","modified_gmt":"2015-09-03T02:07:26","slug":"welspun-vs-unknown-on-12-march-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/welspun-vs-unknown-on-12-march-2010","title":{"rendered":"Welspun vs Unknown on 12 March, 2010"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Welspun vs Unknown on 12 March, 2010<\/div>\n<div class=\"doc_author\">Author: R.M.Doshit,&amp;Nbsp;Honourable Mr.Justice Shah,&amp;Nbsp;<\/div>\n<pre>   Gujarat High Court Case Information System \n\n  \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n\n \n\n\n\t \n\nOJA\/14\/2010\t 5\/ 5\tORDER \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nO.J.APPEAL\nNo. 14 of 2010\n \n\nIn\n\n\n \n\nCOMPANY\nAPPLICATION No. 21 of 2010\n \n\nIn\n\n\n \n\nCOMPANY\nPETITION No. 166 of 2009\n \n\nIn\n\n\n \n\nCOMPANY\nAPPLICATION No. 215 of 2009\n \n\n=========================================================\n\n \n\nWELSPUN\nSTEEL PLATES AND COIL MILLS PRIVATE LIMITED-Appellant(s)\n \n\nVersus\n \n\n.\n- Opponent(s)\n \n\n=========================================================\n \nAppearance\n: \nMRS\nSWATI SOPARKAR for\nAppellant(s) : 1, \nNone for Opponent(s) :\n1, \n=========================================================\n\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMS. JUSTICE R.M.DOSHIT\n\t\t\n\t\n\t \n\t\t \n\t\t \n\t\t\t \n\nand\n\t\t\n\t\n\t \n\t\t \n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE MD SHAH\n\t\t\n\t\n\n \n\nDate\n: 12\/03\/2010 \n\n \n\n \nORAL\nORDER<\/pre>\n<p> \t  (Per : HONOURABLE MS. JUSTICE<br \/>\nR.M.DOSHIT)<\/p>\n<p>\tThis<br \/>\nAppeal preferred under Section 483 of the Companies Act arises from<br \/>\nthe order dated 28th January 2010 made by the learned<br \/>\nCompany Judge in Company Application No. 21 of 2010 in Company<br \/>\nPetition No.166 of 2009.\n<\/p>\n<p>\tOne<br \/>\nWelspun Gujarat Stahl Rohren Limited (hereinafter referred to as  the<br \/>\nCompany ) had proposed a scheme of demerger. Under the said<br \/>\nscheme of demerger the Company had resolved to demerge its Plate and<br \/>\nCoil mill Division to form a wholly owned subsidiary in the name of<br \/>\nWelspun Steel Plates and Coil Mills Pvt. Ltd. (hereinafter referred<br \/>\nto as  the Resulting Company ).\n<\/p>\n<p>\tThe<br \/>\nResulting Company filed Company Petition No. 166 of 2009 for approval<br \/>\nof the scheme of de-merger under Sections 391 to 394 of the Companies<br \/>\nAct, 1956. Under the proposed scheme for de-merger the Company had<br \/>\ndecided,  However, that in the event of the aforesaid sanctions,<br \/>\napprovals, or orders, for any reason not being obtained on or before<br \/>\n31-12-2009 or within such further period or periods as may be<br \/>\nmutually agreed upon between the Demerged Company and the Resulting<br \/>\nCompany, through their respective Board of Directors, this Scheme<br \/>\nshall become null and void and in that event no rights and<br \/>\nliabilities shall accrue to or be incurred inter-se by the parties in<br \/>\nterms of this Scheme and both the parties will be absolved from the<br \/>\neffect of any action\/inaction taken by them in response of the<br \/>\nScheme . As the sanction was not accorded by 31st<br \/>\nDecember 2009, in absence of a mutual agreement for further period,<br \/>\nthe scheme became null and void in terms of the aforesaid paragraph<br \/>\n18.1.\n<\/p>\n<p>\tThe<br \/>\nResulting Company, therefore, approached the learned Company Judge in<br \/>\nCompany Application No. 21 of 2010 for withdrawal of the Company<br \/>\nPetition No. 166 of 2009 and the entire proceeding for sanction of<br \/>\nthe proposed scheme. The learned Company Judge has, by order dated<br \/>\n28th January 2010, directed the appellant  to inform<br \/>\nall Equity shareholders and also  publish necessary public<br \/>\nadvertisements to the said effect in Indian Express (English Daily),<br \/>\nAhmedabad Edition and Phulchhab (Gujarati Daily), Rajkot Edition,<br \/>\nwith 21 days clear notice.  Therefore, the present Appeal.\n<\/p>\n<p>\tLearned<br \/>\nAdvocate Mrs. Soparkar has appeared for the appellant. She has<br \/>\nproduced copy of the proposed scheme of de-merger. She has submitted<br \/>\nthat paragraph 18.1 envisages that unless required sanction were<br \/>\nreceived by 31st December 2009, the scheme would become<br \/>\nnull and void. She has further submitted that in response to the<br \/>\npublic notice given under Section 391 of the Companies Act, nobody<br \/>\nhad come forward to object to the proposed scheme.\n<\/p>\n<p>\tMrs.\n<\/p>\n<p>Soparkar has submitted that the direction to inform all the equity<br \/>\nshareholders and to publish advertisement in the daily newspapers, is<br \/>\nunwarranted.  She has submitted that the appellant is the wholly<br \/>\nowned subsidiary of the holding Company   Welspun Gujarat Stahl<br \/>\nRohren Limited.  The  Welspun Gujarat Stahl Rohren Limited   the<br \/>\nholding Company was also before the Company Court in Company<br \/>\nApplication No.22 of 2010.\n<\/p>\n<p>\tShe<br \/>\nhas further submitted that the learned Company Judge had made a<br \/>\nsimilar order on Company Application No. 22 of 2010 in Company<br \/>\nPetition No. 165 of 2009 filed by the Company for approval under<br \/>\nSection 391 to 394 of the Act. The challenge to the said order in<br \/>\nO.J. Appeal No. 13 is upheld.  By order dated 26th<br \/>\nFebruary 2010, the said O.J. Appeal No.13 of 2010 is allowed.\n<\/p>\n<p>\tWe<br \/>\nare of the opinion that in view of paragraph 18.1 of the Scheme, the<br \/>\nproposed scheme of de-merger has become null and void. Besides,<br \/>\nissuing notice to the only shareholder, the Company and publication<br \/>\nof advertisement are mere paper formality.  Such directions, on the<br \/>\nfacts of the matter are not warranted.\n<\/p>\n<p>\tFor<br \/>\nthe aforesaid reason, the Application No. 21 of 2010 is allowed. The<br \/>\nimpugned order dated 28th January 2010 made by the learned<br \/>\nCompany Judge in Company Application No. 21 of 2010 is set aside. The<br \/>\nCompany Application no.21 of 2010 is allowed.  The appellant is<br \/>\nallowed to withdraw the Company Petition No. 166 of 2009 filed under<br \/>\nSection 391 to 394 of the Companies Act.\n<\/p>\n<p>  (M.D.\n<\/p>\n<pre>Shah, J.)\t\t\t\t(Ms. R.M. Doshit, J.)\n \n\n \n\n\n \n\n\n*menon\n \n\n \n\n\n\n    \n\n \n\t   \n      \n      \n\t    \n\t\t   \u00a0\u00a0\u00a0\n\t   \n      \n\t  \t    \n\t\t   Top\n\t   \n      \n\n\n<\/pre>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Welspun vs Unknown on 12 March, 2010 Author: R.M.Doshit,&amp;Nbsp;Honourable Mr.Justice Shah,&amp;Nbsp; Gujarat High Court Case Information System Print OJA\/14\/2010 5\/ 5 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD O.J.APPEAL No. 14 of 2010 In COMPANY APPLICATION No. 21 of 2010 In COMPANY PETITION No. 166 of 2009 In COMPANY APPLICATION [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-104249","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Welspun vs Unknown on 12 March, 2010 - Free Judgements of Supreme Court &amp; 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