Assignment of secured debt justified substitution of the assignee in the pending company petition.

A secured debt together with all attendant rights, title, security and interest was assigned by Sicom Limited to Mishapar Investments Limited, so the assignee became entitled to be substituted in the pending company petition. The Supreme Court had already allowed substitution in the connected proceedings and remitted the matter for consideration of the scheme under Section 391 of the Companies Act, 1956. As no party objected, the application for substitution was granted and Mishapar Investments Limited was substituted in place of Sicom Limited.

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Issues: Whether Mishapar Investments Limited could be substituted in place of Sicom Limited in the pending company petition after assignment of the secured debt and in view of the Supreme Court order.

Analysis: The debt and all attendant rights, title, security and interest stood assigned by Sicom Limited to Mishapar Investments Limited. The Supreme Court had already allowed substitution in the connected proceedings and remitted the matter to the Company Judge for consideration of the scheme under Section 391 of the Companies Act, 1956. In the absence of objection from the parties, the application for substitution required to be granted.

Conclusion: The substitution was allowed and Mishapar Investments Limited was permitted to be substituted in place of Sicom Limited in the company petition.

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