{"id":188579,"date":"2010-08-11T00:00:00","date_gmt":"2010-08-10T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/idea-vs-unknown-on-11-august-2010"},"modified":"2017-12-17T03:02:43","modified_gmt":"2017-12-16T21:32:43","slug":"idea-vs-unknown-on-11-august-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/idea-vs-unknown-on-11-august-2010","title":{"rendered":"Idea vs Unknown on 11 August, 2010"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Idea vs Unknown on 11 August, 2010<\/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\/22020\/2009\t 9\/ 9\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. 220 of 2009\n \n\n \n=========================================================\n\n \n\nIDEA\nCELLULAR LIMITED - Applicant(s)\n \n\nVersus\n \n\n.\n- Respondent(s)\n \n\n=========================================================\n \nAppearance\n: \nMR\nMIHIR JOSHI, Ld. SENIOR ADVOCATE with SINGHI &amp; CO\nfor Applicant(s) : 1, \nNone for\nRespondent(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: 12\/05\/2009  \n \nORAL ORDER<\/pre>\n<p>1.\tHeard Senior Advocate,<br \/>\nMr. Mihir Joshi, appearing for the Applicant Company.\n<\/p>\n<p>2.\tIn this Company<br \/>\nApplication the Applicant has prayed for holding separate meetings of<br \/>\nthe Equity Shareholders, Secured Creditors and Unsecured Creditors of<br \/>\nthe Applicant Company for the purpose of considering and, if thought<br \/>\nfit, approving with or without modification, the arrangement embodied<br \/>\nin the Scheme of Arrangement between Idea Cellular Limited and<br \/>\nVitesse Telecom Private Limited and their respective shareholders and<br \/>\ncreditors and for issuing appropriate directions incidental for<br \/>\nholding of such meetings.\n<\/p>\n<p>3.\tBy the present Scheme<br \/>\nof Arrangement there would be reduction of Securities\/Share Premium<br \/>\nAccount. The said reduction is an integral part of the Scheme of<br \/>\nArrangement and the Applicant Company has prayed for dispensing with<br \/>\nfollowing a separate procedure for the said reduction.\n<\/p>\n<p>4.\tUpon hearing Shri Mihir<br \/>\nJoshi, Ld. Senior Advocate and upon perusal of the Application and<br \/>\nsupporting Affidavit dated 11-5-2009 filed by Shri Pankaj Kapdeo,<br \/>\nCompany Secretary and the Annexures referred to therein (Annexure-E<br \/>\nbeing the copy of the Scheme of Arrangement), it is directed as<br \/>\nunder:\n<\/p>\n<p>5.\tA meeting of the Equity<br \/>\nShareholders of the Applicant Company shall be convened and held at<br \/>\nCambay Spa and Resort, Plot No. X-22\/23 GIDC Electronic Estate,<br \/>\nSector 25, Gandhinagar-382 044, Gujarat, India, on Monday, the 13th<br \/>\nday of July, 2009 at 10.00 a.m. (1000 hours) for the purpose of<br \/>\nconsidering, and if thought fit, approving with or without<br \/>\nmodification, the arrangement embodied in the Scheme of Arrangement<br \/>\nbetween Idea Cellular Limited and Vitesse Telecom Private Limited and<br \/>\ntheir respective shareholders and creditors.\n<\/p>\n<p>6.\tA meeting of the<br \/>\nSecured Creditors of the Applicant Company shall be convened and held<br \/>\nat Cambay Spa and Resort, Plot No. X-22\/23 GIDC Electronic Estate,<br \/>\nSector 25, Gandhinagar-382 044, Gujarat, India, on Tuesday, the 14th<br \/>\nday of July, 2009 at 10.00 a.m. (1000 hours), for the purpose of<br \/>\nconsidering, and if thought fit, approving with or without<br \/>\nmodification, the arrangement embodied in the Scheme of Arrangement<br \/>\nbetween Idea Cellular Limited and Vitesse Telecom Private Limited and<br \/>\ntheir respective shareholders and creditors.\n<\/p>\n<p>7.\tA meeting of the<br \/>\nUnsecured Creditors of the Applicant Company shall be convened and<br \/>\nheld at Cambay Spa and Resort, Plot No. X-22\/23 GIDC Electronic<br \/>\nEstate, Sector 25, Gandhinagar-382 044, Gujarat, India, on Tuesday,<br \/>\nthe 14th day of July, 2009 at 2.30 p.m. (1430 hours) or<br \/>\nimmediately after the conclusion of the meeting of the Secured<br \/>\nCreditors of the Applicant Company as directed by the Court by its<br \/>\norder dated 12.5.2009 passed in Company Application No. 221 of 2009<br \/>\n(whichever is later), for the purpose of considering, and if thought<br \/>\nfit, approving with or without modification, the arrangement embodied<br \/>\nin the Scheme of Arrangement between Idea Cellular Limited and<br \/>\nVitesse Telecom Private Limited and their respective shareholders and<br \/>\ncreditors.\n<\/p>\n<p>8.\tAt least 21 clear days<br \/>\nbefore the day appointed for the meetings to be held as aforesaid, an<br \/>\nadvertisement convening the said meetings indicating the day, the<br \/>\ndate, the place and time aforesaid and stating that copies of the<br \/>\nsaid Scheme of Arrangement, the statement required to be furnished<br \/>\npursuant to section 393 of the  Companies Act, 1956 and Form of Proxy<br \/>\ncan be obtained free of charge at the Registered office of the<br \/>\nApplicant Company or at the office of its Advocates, i.e. M\/s. Singhi<br \/>\n&amp; Co., 7-8 Premchand House Annexe, Ashram Road, Old High Court<br \/>\nWay, Ahmedabad-380 009, be inserted once in Indian Express (all<br \/>\neditions in the State of Gujarat) and Gujarat Samachar (all editions<br \/>\nin the State of Gujarat).  Publication of the advertisement in the<br \/>\nGujarat Government Gazette is dispensed with.\n<\/p>\n<p>9.\tIn addition, at least<br \/>\n21 clear days before the date of the meetings to be held as<br \/>\naforesaid, a notice convening the said meetings, indicating the day,<br \/>\nthe date, the place and time aforesaid, together with a copy of the<br \/>\nsaid Scheme of Arrangement, a copy of the Statement required to be<br \/>\nfurnished pursuant to Section 393 of the Companies Act, 1956 and the<br \/>\nprescribed Form of Proxy, shall be sent by prepaid letter post under<br \/>\nCertificate of Posting addressed to each of the Equity Shareholders,<br \/>\nSecured Creditors and Unsecured Creditors of the Applicant Company at<br \/>\ntheir respective registered or last known addresses. The Notice shall<br \/>\nbe sent to the Equity Shareholders of the Applicant Company with<br \/>\nreference to the list of persons appearing on the record of the<br \/>\nApplicant Company and its register as on 5th June 2009.<br \/>\nThe notice shall be sent to the Secured Creditors and Unsecured<br \/>\nCreditors of the Applicant Company with reference to the list of<br \/>\npersons appearing on the record of the Applicant Company as on 30th<br \/>\nMay 2009.\n<\/p>\n<p>10.\tThe settling and\/or<br \/>\napproval of the advertisement, the form of Notice and the Statement<br \/>\nto accompany the Notice by the Registrar of this Court is dispensed<br \/>\nwith.\n<\/p>\n<p>11.\tMr. Sanjeev Aga,<br \/>\nManaging Director of the Applicant Company, in his absence Mr. Gian<br \/>\nPrakash Gupta, Director of the Applicant Company and in his absence,<br \/>\nMr. Saurabh Misra, Director of the Applicant Company shall be the<br \/>\nChairman of the aforesaid meetings to be held on Monday, the 13th<br \/>\nday of July, 2009 and on Tuesday, the 14th day of July<br \/>\n2009, respectively, and in respect of any adjournment or adjournments<br \/>\nthereof.\n<\/p>\n<p>12.\tThe Chairman appointed<br \/>\nfor the aforesaid meetings do issue the advertisement and send out<br \/>\nthe notices of the meetings referred to above. The Chairmen are free<br \/>\nto avail the services of the Applicant Company or their Officers or<br \/>\nservants or agents or any other agency for carrying out the said<br \/>\ndirection. It is further directed that the Chairman of the meetings<br \/>\nshall have all powers under the Articles of Association of the<br \/>\nApplicant Company and under the Companies (Court) Rules, 1959 in<br \/>\nrelation to conduct of meetings including an amendment to the<br \/>\naforesaid Scheme of Arrangement or resolutions, if any, proposed at<br \/>\nthe aforesaid meetings by any person(s) and to ascertain the decision<br \/>\nof the aforesaid meetings on the poll.\n<\/p>\n<p>13.\tThe quorum for the<br \/>\nmeeting of the Equity Shareholders shall be 5 persons present in<br \/>\nperson. The quorum for the meeting of the Secured Creditors shall be<br \/>\n2 persons present in person and the quorum for the meeting of the<br \/>\nUnsecured Creditors shall be 5 persons present in person.\n<\/p>\n<p>14.\tThe voting by proxy be<br \/>\npermitted, provided that the proxy in the prescribed form duly signed<br \/>\nby the person entitled to attend and vote at the meetings, is filed<br \/>\nwith the Applicant Company at its Registered Office at  Suman Towers,<br \/>\nPlot No. 18, Sector No.11, Gandhinagar-382 011, Gujarat, India, not<br \/>\nlater than 48 hours before the respective meetings.\n<\/p>\n<p>15.\tThe value of each<br \/>\nEquity Shareholders, Secured Creditors and Unsecured Creditors shall<br \/>\nbe in accordance with the books of the Applicant Company and where<br \/>\nthe entries in the books are disputed, the Chairman shall determine<br \/>\nthe value for purposes of the meetings and his decision in that<br \/>\nbehalf shall be final.\n<\/p>\n<p>16.\tIt is further directed<br \/>\nthat the Chairman do report to this Court the result of the said<br \/>\nmeetings within 14 days of the conclusion of the meetings, and the<br \/>\nsaid report shall be verified by his affidavit.\n<\/p>\n<p>17.\tMr. Joshi, Ld. Senior<br \/>\nCounsel, has submitted that there would be reduction of<br \/>\nSecurities\/Share Premium Account, which shall be effected as an<br \/>\nintegral part of the Scheme itself. Mr. Joshi has further submitted<br \/>\nthat the Equity Shareholders of the Applicant Company are to consider<br \/>\nthe Scheme in the meeting which includes the said reduction. As the<br \/>\nprocedure under section 101 read with section 78 of the Companies<br \/>\nAct, 1956 being parimateria with the present proceedings, no separate<br \/>\nprocedure for reduction of Securities\/Share Premium Account is<br \/>\nrequired to be followed.  Mr. Joshi has referred to Section 100 and<br \/>\n101 of the Companies Act, 1956 and submitted that reduction<br \/>\ncontemplated in the Scheme do not involve either diminution of<br \/>\nliability in respect of unpaid share capital or payment to the<br \/>\nShareholders of paid-up share capital and do not in any manner affect<br \/>\nthe interest of Creditors and no meeting of Creditors is required to<br \/>\nconsider the said reduction.  Mr. Mihir Joshi has relied upon the<br \/>\norder dated 31.1.2003 passed by this Court in Company Application No.<br \/>\n30 of 2003 and the order dated 29.7.2008 passed by this Court in<br \/>\nCompany Application No. 426 of 2008 wherein this Court has dispensed<br \/>\nwith the following a separate procedure for reduction of Capital.\n<\/p>\n<p>18.\tUpon hearing the<br \/>\nsubmissions of Mr. Joshi and upon considering the orders cited by<br \/>\nhim, I am of the view that the meeting of Creditors for considering<br \/>\nthe aforesaid reduction is not required.  I hold that no separate<br \/>\nprocedure is required to be followed for reduction of<br \/>\nSecurities\/Share Premium Account, as the same is part and parcel of<br \/>\nthe Scheme.\n<\/p>\n<p>19.\tThis Company<br \/>\nApplication is disposed off accordingly.\n<\/p>\n<p>    (K. 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 Idea vs Unknown on 11 August, 2010 Author: K.A.Puj,&amp;Nbsp; Gujarat High Court Case Information System Print COMA\/22020\/2009 9\/ 9 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD COMPANY APPLICATION No. 220 of 2009 ========================================================= IDEA CELLULAR LIMITED &#8211; Applicant(s) Versus . &#8211; Respondent(s) ========================================================= Appearance : MR MIHIR JOSHI, Ld. SENIOR [&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-188579","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>Idea vs Unknown on 11 August, 2010 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/idea-vs-unknown-on-11-august-2010\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Idea vs Unknown on 11 August, 2010 - Free Judgements of Supreme Court &amp; 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