{"id":255464,"date":"2009-06-25T00:00:00","date_gmt":"2009-06-24T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/sun-microsystems-india-private-vs-nil-on-25-june-2009"},"modified":"2019-02-11T04:45:40","modified_gmt":"2019-02-10T23:15:40","slug":"sun-microsystems-india-private-vs-nil-on-25-june-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/sun-microsystems-india-private-vs-nil-on-25-june-2009","title":{"rendered":"Sun Microsystems India Private … vs Nil on 25 June, 2009"},"content":{"rendered":"
Karnataka High Court<\/div>\n
Sun Microsystems India Private … vs Nil on 25 June, 2009<\/div>\n
Author: B.V.Nagarathna<\/div>\n
 \n\nN THE HIGH COURT OF KARNATAKA AT BANGALORE\nDATED THIS THE 25\" DAY OF' JUNE, 2009\n\nBEFORE\n\nTHE HOWBLE MRS. .JUsT:cE B.v.NAGAR<\/a>:\u00a7'i'HN\u00a7    \u00ab \"\n\n(30.13. NO. 1071:2003.' \nBETWEEN\u00bb I  V\n\nsun MICROSYSFEMS iNDIA PR_I\"VATE LIMFFEIJ, \nREGISTERED OFFICE: 67*' FLOOR,\" \"  ~ \nDWYASREE CHAMBERS,  %\nOFF LONGFORD Roam  _\nBANGALORE ~ 560 025. *  '--    _\n\n- _ 5  \"-PETFFIONER\n(BY SR} A. MURAi;\u00a7,_ P.I{.=AR--.I13N; ADVOCATES)\n\nAND:--\n\nNIL\nRESPONDENT\n\n(BY SRi K;\"-NAGESmv)\u00a7.RA;9PA, C.G.C. FOR ROG)\n\n TEES co.'1>.v._Is FILED UNDER SECTIONS 391 TO 394\n\n,,-OF\"THE'-L{10--MPANIE'S\"ACl', 1956, PRAYING THAT FOR THE\n\n .RE.ASO_N$ S'I'ATED THEREIN THIS HON'BLE COURT MAY\n\n__BE \"PLE,ASED TO SANCTION THE SCHEME OF\n\n';'!_Bv'i.*i_i;(};*i!~?\u00a7z4\\Tif,)'?-J, ANNEXURE-A so AS TO BE BINIHNG on\n\nTHE' PE'_rmioNER COMPANY, YFS SHAREHOLDERS AND\n\n_ ALSG on \u00abSUN MICROSYSTEMS HYDERABAD PRIVATE\n\n <._LIMI'I'E'.D";.AND THEIR SHAREHOLDERS AND CREBITQRS\n  pm: ETS.\n\n '    This Co.P. is coming on for Orders this day, the court\n"  made the following:\n\n\n\n \n\nORDER\n<\/pre>\n
This peti\ufb01on is \ufb01led by the Transfente H<\/p>\n
sceldng sanction of a Scheme: of Amalgamation   <\/p>\n
Microsystems India Private LiInitL35Li\u00bbAA>(‘1″I”A21*1S’4?.’\u00a3trt;or <\/p>\n
with the petitioner herein. The scheme  _<\/p>\n
A1mexure– ‘A’ to the petition. V . 9<\/p>\n
2. The petitioner: waeo”‘nee;ee1’sereted”‘one 2’c 3.3.1993
\nunder the name and styio  India Private
\nLimited within_\ufb01ee;   engaged in the
\nbusiness of   call support,
\n\u00bb companies. It is also
\nengagc &_ io  and consultation and<\/p>\n
educationeil.._4jsQ::rvioeo:’.’._  ‘copy of the memorandum and<\/p>\n
   “of asoooia\ufb01onv is produced as Am1exure–B. The<\/p>\n
  of the petitioner-comgaany is at 6″” Floor,<\/p>\n
  O\ufb02” Langford Road, Qangalozxe-560 O25.<\/p>\n
  ” The authorised share capital of the petitioner<\/p>\n
 compa\ufb01y. is res.5,oo,oo,ooo\/- divided into 53,90,000\/– equity<\/p>\n
 of Rs. 103\/ – each and the issued, subscribed and<\/p>\n
”   feaid-up share capital of the company as on March 33,2007<\/p>\n
\ufb02y”\n<\/p>\n
\n
_ Balance<\/p>\n
is Rs.f2,12,()0,000\/– divided into ‘2,12,0C\ufb01[\u00ab- equity shares of<\/p>\n
Rs.100\/~ each \ufb01liiy palti up.\n<\/p>\n
4. As per the latest audited balance  V’<\/p>\n
Petitioner Company up to March 3’1;A>’E20O’Z,”.<th_r1-J V'<\/p>\n
liabilities of the company am as fo11oi&zs:'– A
\n wrameunts
\n   dian
\nShare 2,12,(10_,'03o  ,Fi$ce.\u00bb;i\u00bb_  516098927
\n"   A
\nPmfitaa Loss 113,70,o6,263  I{;1v<t'3t4*f_j _ 16063233
\n.    rmtntii. .3 "<\/p>\n
\n\nLiabilities (A11 amounts  \nIndia}; Rupees)  '\n\n('on Jim'\n\nFinance     iO..,Q7;8\u00a7',:,_253  Neat current 751623371\nLease 1 -T      Assets\nObhgatlon      \n\n<\/pre>\n
Unseciiiiredv ‘A — . Vi”, 3:;:16,s;.1V;323  “‘f)ef\u00a7:1’red 63393293<\/p>\n
_ .\u00bb 1   ‘ 1 TaxAssct
\nTotai. . .13~1.\u00a7’.’:6>t,’83’;32\u00a73 Total 1347683829<\/p>\n
V”   obf\u00e9\u00e9t\u00e9v of the petitioner-company are dealm’ g<\/p>\n
 bu\ufb01iaes\u00e9 computers, information process anti<\/p>\n
 ” allied equipments and to engage in the<\/p>\n
 bz1six1e$f,\u00e9\u00e93~ of so\ufb01wam related aciivities including<\/p>\n
  installation, servicing and to engage in<\/p>\n
63_eve1op1:acnt, maintenance, training in software 811$} net\u00bb<\/p>\n
\/91.\n<\/p>\n
\n
s V. \u00ab_ <\/p>\n
Working products and other allied objects. Accoxding {c”–the<\/p>\n
petitioner, it is carrying on its business since the ” V.<\/p>\n
5. The Beam of Directors of ;;;c’:-._:     <\/p>\n
Company approved the Scheme’;  ”  ‘*7o\ufb01L:<\/p>\n
15.5.2008 by virtue of which the <\/p>\n
proposed to be merged with eixldject ‘V<\/p>\n
to the con\ufb01rmation of tlgds  dd  of
\nAndhra Pradesh Withi\ufb01.’   the registered
\nof\ufb01ce of the   V”  It is also
\nsubmitted    is a wholly owned
\nsubsid\u00a7l3I3*’  ie;e1″eiz1~.”\u00a7 The memorandum and
\nAt\ufb01cltzc’-_cf ” latest balance sheet of the
\nTransfeme  at Axmexuxe-D and E<\/p>\n
, ., ..  .33:  =.f\u00ab'{{;ccrding to the petitioner herein the Transferor<\/p>\n
 in Hyderabad on 5.4.2004 as<\/p>\n
 .$\u00a7%\u00a7te1iis Private Limited and a fresh certi\ufb01cate of<\/p>\n
 ., ixzcogpcfa\ufb01on was issued on 28.3.2006. The main objects of<\/p>\n
die Transfemr company is aim to provide Software<\/p>\n
dd  ‘development sexvices in. the \ufb01eld {sf electronic data storage<\/p>\n
\/9.\n<\/p>\n
\n
“Q”:\n<\/p>\n
devices and various support services including eales<\/p>\n
services. It is also stated that the Board of   <\/p>\n
Transfemr Company has also approved the   _&  <\/p>\n
of amalgamation.\n<\/p>\n
7. Consequently, \ufb02j,e_ peti\ufb01ooer  n  ~.<\/p>\n
C.A.No.698\/2008 pm-dueed   %’<\/p>\n
dispensation of the  shexeholders and
\nunsecured creditors   this court
\ndispensed   _   of the share
\nholders      stated that there
\nare no ” g; ”   petitioneroompany.\n<\/p>\n
Thereafter “this   \ufb01led seeking sanction for
\nproposed  e\ufb01xolgema\ufb01on.\n<\/p>\n
\\’  __On edmission of this petition notice was issued<\/p>\n
 io \ufb021e_  \ufb02ixector, southern region. with a tiixection to<\/p>\n
 ‘pe\ufb01fioei-;.1: out adver\ufb01sement of the pctitioa in two<\/p>\n
   and accordingly the petitioner took out<\/p>\n
 ziotioe 5:; 10.11.2008. The date of heaxting was \ufb01xed on<\/p>\n
—  E. Till date there has been no objection from any<\/p>\n
\/.\n<\/p>\n
\n
quarter in msptmse to the advertisement take out by the
\npetitioner.\n<\/p>\n
9. On behalf of Regcmal Director, Regislz\ufb01\ufb02 of<\/p>\n
Companies has \ufb01led an a\ufb01davit raising  K<\/p>\n
objections:\n<\/p>\n
1. As the registered o\ufb01ce of th\u00e9’Vt1*’eu’-nsfcror
\nsituated in the state of   e2sh,_”‘thtf.-
\nis subject to approv}a1.___ of Hogt\ufb01zle   of  .<\/p>\n
Andhra Pxadesh also.   _ <\/p>\n
2. Although the u*a3;1sfe:jor’  ist  within
\nthe ju1isdic\ufb01o\ufb01”‘oVfAndh:fa:V15i’agiz\u00a7$h, High Court, the
\ntransfergg     ‘ :.\u20ac;  ._ ‘prayer sacking<\/p>\n
 “<\u00a7'itier.;Vf9r    transfcror company in
\n "  the I-ionfble High court
\n Vis"'z1<5t.V\u00a7:oi\u00a7it\u00a2\u00e9f.V.T11\u00a3:1'cfoz*c, the said prayer has<\/p>\n
_ * \u00bb _to like dvcle\ufb01id  {\ufb01e Transfemc Company.
\n Mc\ufb01ioxaadum of Association of the Tmnsfexee
\n_   does not contain speci\ufb01c clause for
\n1  with any other company. Therefom,
\n Egirl\u00e9lzmorandura of Associa\ufb01on has to be amended
\n smitably to insert the above clause before the<\/p>\n
 "sa11ction of the scheme."\n<\/p>\n
10. I have heaxti the lcamed counsel for the<\/p>\n
   pcti\ufb01oner and learneti counsel for the Regonal Birecrtor.<\/p>\n
\/Q,<\/p>\n
1 1. It is submitted on behalf of the petitioner  in<\/p>\n
the instant case the proposed Scheme of <\/p>\n
respect of two companies and they are in   K V’ <\/p>\n
activity and that the transferor  is <\/p>\n
suhsidiaxy of the petitioner CO InpaI1:Y’   .,<\/p>\n
for the proposed merger is   ‘V<\/p>\n
offerings under one   in
\nadministrative and  so as to cut
\ndown overheagl   generally to
\nbring more  on the conduct of
\nboth    that the proposed
\nschem<=# wi:l1:. be  the companies and that<\/p>\n
thert;  I16 "\u00a7njz'cst;igati!_3n' \ufb01roceedmgs pending in relation to<\/p>\n
 v   '\u00e9ompany and hence there is no legal<\/p>\n
    according sanctism to the proposed scheme.<\/p>\n
  12;  it is submitted on behalf of the<\/p>\n
 Regi\u00a7L1\u00a71'\u00ab:_Di1tcmr that in the instant case the Tmnsfcror<\/p>\n
'4 '*(:?dmpan5I is situated within the jurisdiction of the High<\/p>\n
—   ofA1:1dhra Pradesh and themforc, it is necessary that a<\/p>\n
u W\ufb01eparate pctiticn be \ufb01led by the Transfczror Company before<\/p>\n
\/’D<\/p>\n
the Big}; Court of Andhra Pradesh and that the prayeIV9e’\ufb01’i\u00a3:\u00a7lQe<\/p>\n
by the petitioner herein with regard to the    _<\/p>\n
Transferor company cannot be granted by    b <\/p>\n
of the fact that the Transferor coi.);;pa;3,jf <\/p>\n
jurisdiction of the Andhra PVradaesh H_i’gh co:oV\u00bb_:%’t.A .’jt  <\/p>\n
stated that the memorandum   of
\nthe petitioner company  \u00abany  ciause
\nfor amalgamation and   would
\nhave to be  to <\/p>\n
13.   petitioner submits that
\n iiaas been \ufb01ied by the
\n‘I’ra11sfe:for”  toe High court of Amlhxa<\/p>\n
Pradesh the se:ne~-iepending \ufb01nal disposal and that the<\/p>\n
 ‘~    diesolu\ufb01on of the Transferor Company<\/p>\n
 Vm\u00e9iiie  would not be pressed and further Iekying<\/p>\n
upeem\u00e9 \u00a7:;:’;:1.’e-\u00e9of this court dated 9.1.2009, he states in<\/p>\n
   391 to 394 of the Act, the scope of the said<\/p>\n
x V’ \u00ab\u00bbseotio;1s”‘ being of wide amplitude and further the entire<\/p>\n
‘  ee\ufb01eoze being subject to the sanction of this court, the said<\/p>\n
”  “objection would have to be over ruled. \u00a31\/p _,.<\/p>\n
14. Having heard the eounscl on both sidesVua\ufb01\u00a7_\u00a7i”4:\u00a7n<\/p>\n
perusal of the material on record, it is seen  <\/p>\n
‘I’ransferor Company as Well as the ‘Pransfemc..(:\u00a7:\u00a7p a\u00a71gfi_   b <\/p>\n
in the same \ufb01eld of activity namely   <\/p>\n
development and that the tra1:;sfe1*dr_   1  L\u00bb<\/p>\n
owned subsidiary of the  \u00a2on1p.\u00ab1::a\u00a7jr irhiti\u00a7ftk\u00a7\u00a3:d the   f;l..1..risdiction of the High court of Andra<\/p>\n
 ti’?z\u00a7\u00e9i:}:eAsi:.,4:\u00e93::i_d.\ufb01 \u20acz—_scpa1’ate company pe\ufb01ti-on has been \ufb01led<\/p>\n
  for the propos\ufb01 scheme as weak} as<\/p>\n
 mn\ufb01cq\ufb01cgf\ufb01al directions and considering the fact that under<\/p>\n
V’ \u00bb and 394 of the Companies Act<\/a>, the power to merge<\/p>\n
 ‘fir \u00bb\u00a7i’tA=.~mex*gc is mhcrent and \ufb02ow from the said sections even<\/p>\n
 the absence: of any cormsponding pmvisions in the<\/p>\n
\/”<\/p>\n","protected":false},"excerpt":{"rendered":"
Karnataka High Court Sun Microsystems India Private … vs Nil on 25 June, 2009 Author: B.V.Nagarathna N THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 25″ DAY OF’ JUNE, 2009 BEFORE THE HOWBLE MRS. .JUsT:cE B.v.NAGAR:\u00a7’i’HN\u00a7 \u00ab ” (30.13. NO. 1071:2003.’ BETWEEN\u00bb I V sun MICROSYSFEMS iNDIA PR_I”VATE LIMFFEIJ, REGISTERED OFFICE: 67*’ FLOOR,” […]<\/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":[8,20],"tags":[],"class_list":["post-255464","post","type-post","status-publish","format-standard","hentry","category-high-court","category-karnataka-high-court"],"yoast_head":"\nSun Microsystems India Private ... vs Nil on 25 June, 2009 - Free Judgements of Supreme Court & 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\/sun-microsystems-india-private-vs-nil-on-25-june-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sun Microsystems India Private ... vs Nil on 25 June, 2009 - 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