Government conversion power permits compulsory conversion of debt into equity; company may appeal to Tribunal for review. A government may convert debentures or loans into company shares on terms it considers reasonable even if the original instruments lacked conversion options. If the company objects to those conversion terms, it may appeal to the Tribunal in Form NCLT 9 within the prescribed period; the Tribunal will hear the company and the government and pass such order as it deems fit.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Government conversion power permits compulsory conversion of debt into equity; company may appeal to Tribunal for review.
A government may convert debentures or loans into company shares on terms it considers reasonable even if the original instruments lacked conversion options. If the company objects to those conversion terms, it may appeal to the Tribunal in Form NCLT 9 within the prescribed period; the Tribunal will hear the company and the government and pass such order as it deems fit.
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