{"id":144034,"date":"2011-05-06T00:00:00","date_gmt":"2011-05-05T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/welspun-vs-unknown-on-6-may-2011-2"},"modified":"2018-01-17T01:05:35","modified_gmt":"2018-01-16T19:35:35","slug":"welspun-vs-unknown-on-6-may-2011-2","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/welspun-vs-unknown-on-6-may-2011-2","title":{"rendered":"Welspun vs Unknown on 6 May, 2011"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Welspun vs Unknown on 6 May, 2011<\/div>\n<div class=\"doc_author\">Author: K.A.Puj,&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\n\n \n\n\n\t \n\nCOMA\/60320\/2008\t 6\/ 8\tORDER \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nCOMPANY\nAPPLICATION No. 603 of 2008\n \n\n \n \n=========================================================\n\n \n\nWELSPUN\nINDIA LIMITED - Applicant(s)\n \n\nVersus\n \n\n.\n- Respondent(s)\n \n\n=========================================================\n \nAppearance\n: \nMRS\nSWATI SOPARKAR for\nApplicant(s) : 1, \nNone for Respondent(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\tMR.JUSTICE K.A.PUJ\n\t\t\n\t\n\n \n\n \n \n\n\n \n\nDate\n: 28\/11\/2008 \n\n \n\n \n \nORAL\nORDER<\/pre>\n<p>\tLeave to amend.\n<\/p>\n<p>\tUpon the application of<br \/>\n\tthe abovenamed company by summons dated 26.11.2008, filed under<br \/>\n\tSections 391 to 394 read with Sections 78 and 100 to 104 of the<br \/>\n\tCompanies Act, 1956, upon hearing Smt. Swati Soparkar, advocate for<br \/>\n\tthe applicant company and upon reading of the affidavit dated<br \/>\n\t24.11.2008, filed in support of the Judges&#8217; Summons for directions<br \/>\n\tand other relevant annexures attached in support of the contents of<br \/>\n\tthe affidavit filed by the deponent, (Exhibit &#8216;C&#8217; being a copy of<br \/>\n\tthe proposed scheme of arrangement).\n<\/p>\n<p> IT<br \/>\n\tIS ORDERED :\n<\/p>\n<p>\tThat separate meetings of<br \/>\n\tthe secured creditors, unsecured creditors and equity shareholders<br \/>\n\tof the applicant company shall be convened and held at the<br \/>\n\tregistered office of the company at Welspun City, Village Versamedi,<br \/>\n\tTaluka Anjar, Dist. Kutch, Gujarat   370110 in the state of<br \/>\n\tGujarat on Tuesday, the 13.1.2008 respectively at 2:00 p.m. 3:00<br \/>\n\tp.m. and 4:00 p.m. for the purpose of considering and if thought<br \/>\n\tfit, approving with or without modifications, the proposed scheme of<br \/>\n\tarrangement in the nature of demerger and transfer of marketing<br \/>\n\tdivision of Welspun India Ltd., to Welspun Global Brands Ltd., and<br \/>\n\tits Investment &amp; Treasury Division to Welspun Investments Ltd.,<br \/>\n\tand Restructure of Capital of all these companies.\n<\/p>\n<p>\tThat at least 21 clear<br \/>\n\tdays before the meetings to be held as aforesaid.  Notice convening<br \/>\n\tthe said meetings, indicating the day, the date, the place and the<br \/>\n\ttime as aforesaid, together with a copy of the scheme of<br \/>\n\tarrangement, copy of the explanatory statement required to be sent<br \/>\n\tunder Section 393 of the Companies Act, 1956 and the prescribed form<br \/>\n\tof proxy shall be sent by a pre-paid letter posted Under Certificate<br \/>\n\tof Posting, addressed to each of the equity shareholders, secured<br \/>\n\tcreditors and unsecured creditors of the applicant Company, at their<br \/>\n\tlast known address.\n<\/p>\n<p>\tThat at least 21 clear<br \/>\n\tdays before the meetings to be held as aforesaid, Notice convening<br \/>\n\tthe said meetings indicating the day, the date, the place and time<br \/>\n\tas aforesaid be published, stating that copies of the scheme of<br \/>\n\tarrangement, the explanatory statement required to be furnished<br \/>\n\tpursuant to Section 393 of the Companies Act, 1956 and form of proxy<br \/>\n\tcan be obtained free of charge at the Registered Office of the<br \/>\n\tapplicant company and\/or at its advocate&#8217;s office i.e. 204,<br \/>\n\tAakanksha, opposite Vadilal House, Mithakhali, Navrangpura,<br \/>\n\tAhmedabad 380 009 once each in the India Express, English daily and<br \/>\n\tSandesh, Gujarati daily (both Saurashtra and Kutch edition).\n<\/p>\n<p>\tShri Murari Lal Mittal,<br \/>\n\tthe Executive Director (Finance) of the applicant Company, and<br \/>\n\tfailing him Shri Ram Gopal Sharma, the Director of the applicant<br \/>\n\tcompany, shall be the Chairman of the aforesaid meetings to be held<br \/>\n\ton 13.1.2009 and in respect of any adjournment or adjournments<br \/>\n\tthereof.\n<\/p>\n<p>\tThat the Chairman<br \/>\n\tappointed for the aforesaid meetings do issue advertisements and<br \/>\n\tsend out notices of the said meetings referred to above.  It is<br \/>\n\tfurther directed, that the Chairman of the meetings shall have all<br \/>\n\tpowers under the Article of Association of the applicant company and<br \/>\n\tunder the Companies (Court) Rules, 1959 in relation to conduct of<br \/>\n\tmeetings including an amendment to the scheme or resolution, if any,<br \/>\n\tproposed at any of the meetings by any person(s) and to ascertain<br \/>\n\tthe decision of the meeting on a poll.\n<\/p>\n<p>\tThat the quorum for all<br \/>\n\tthe meetings shall be 5 (five) members of the respective category,<br \/>\n\tpresent in person.\n<\/p>\n<p>\tThat voting by proxy is<br \/>\n\tpermitted provided that the proxy in the prescribed form and duly<br \/>\n\tsigned by the person entitled to attend and vote at the aforesaid<br \/>\n\tmeeting, or by his authorised representative, is filed with the<br \/>\n\tapplicant company at its registered office at Kutch, not later than<br \/>\n\t48 hours before the said meeting.\n<\/p>\n<p>\tThat the value of the<br \/>\n\tvote of each equity shareholder of the company shall be as per the<br \/>\n\tentries in the Registers of the company and that of the creditor<br \/>\n\tshall be as per the books of accounts of the company and where the<br \/>\n\tentries in the records or registers are disputed, the Chairman of<br \/>\n\tthe meetings shall determine the value or number for the purposes of<br \/>\n\tthe meeting and his decision in that behalf would be final.\n<\/p>\n<p>\tThat the Chairman do<br \/>\n\treport to this Court, the result of the said meeting within 14 days<br \/>\n\tof the conclusion of the meeting and the said report shall be<br \/>\n\tverified by his affidavit.\n<\/p>\n<p>\tIt has been submitted<br \/>\n\tthat the only preference shareholder of the company has given the<br \/>\n\twritten consent approving the proposed scheme of arrangement.  The<br \/>\n\tsaid preference shareholder has also given up the right to attend<br \/>\n\tthe meeting for the purpose of considering such resolution.  He has<br \/>\n\talso specifically consented that no shares shall be issued to him by<br \/>\n\tthe resulting companies on the proposed demerger.  A certificate of<br \/>\n\ta Chartered Accountant confirming the said status of preference<br \/>\n\tshareholder has been placed on record.  Under the circumstances, the<br \/>\n\tmeeting of the preference shareholders of the applicant Company as<br \/>\n\trequired to be held under provisions of Section 391(2) of the<br \/>\n\tCompanies Act, 1956, is not necessary to be held and is hereby<br \/>\n\tdispensed with.\n<\/p>\n<p>\tIt has been further<br \/>\n\tsubmitted that the consequential reduction of share capital in form<br \/>\n\tof utilization of share premium account of the applicant company is<br \/>\n\tproposed as an integral part of the proposed scheme of arrangement.<br \/>\n\tFurther, the proposed reduction does not involve either diminution<br \/>\n\tof liability in respect of unpaid share capital or payment to any<br \/>\n\tshareholder of any paid-up share capital and the order of the Court<br \/>\n\tsanctioning the Scheme shall be deemed to be an order under Section<br \/>\n\t102 of the Companies Act confirming the reduction.  The special<br \/>\n\tresolution that may be passed at the meeting approving the scheme by<br \/>\n\tthe shareholders of the applicant company, shall be treated as the<br \/>\n\tspecial resolution as required under Section 100 of the Companies<br \/>\n\tAct, 1956.  In view of this, the procedure prescribed under Section<br \/>\n\t100 and 101(2) of the Companies Act, 1956 are hereby dispensed with.\n<\/p>\n<p>\tThe application is hereby<br \/>\n\tdisposed off.\n<\/p>\n<p>\t\t\t\t\t\t\t\t(K.\n<\/p>\n<p>A. PUJ, J.) <\/p>\n<p>kks<\/p>\n<p>\t\t   \u00a0\u00a0\u00a0<\/p>\n<p>\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Welspun vs Unknown on 6 May, 2011 Author: K.A.Puj,&amp;Nbsp; Gujarat High Court Case Information System Print COMA\/60320\/2008 6\/ 8 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD COMPANY APPLICATION No. 603 of 2008 ========================================================= WELSPUN INDIA LIMITED &#8211; Applicant(s) Versus . &#8211; Respondent(s) ========================================================= Appearance : MRS SWATI SOPARKAR for Applicant(s) [&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-144034","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 v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Welspun vs Unknown on 6 May, 2011 - Free Judgements of Supreme Court &amp; 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