2016 (11) TMI 1507 - HC - Companies Law

Court sanctions scheme of arrangement in second motion petition; emphasizes procedural compliance and transparency.

In Re: STATCON POWER CONTROLS LIMITED & ANR.

The Court granted sanction for a scheme of arrangement in a second motion petition. Notice was served to the Official Liquidator, Registrar of Companies, ... Sanction of the scheme of arrangement allowed - Let the response/report to the present petition be filed by the Official Liquidator as well as the Regional Director within six weeks thereafter. Rejoinder thereto, if any, be filed within a period of four weeks thereafter. The petitioner shall publish the notice of the hearing in newspapers “Times of India” (English edition) and “Veer Arjun” (Hindi edition), in terms of the provisions of Rule 80 of the Companies (Court) Rules, 1959. Notice of hearing shall also be uploaded on the website of the petitioner as also on the website of the Ministry of Corporate Affairs. For this purpose, the petitioner shall supply a copy of the advertisement to be published, to the Regional Director. Issues Involved:Sanction of scheme of arrangement, notice to Official Liquidator, Registrar of Companies, and Central Government through Regional Director, publication of notice of hearing in newspapers, filing of response/report by Official Liquidator and Regional Director, timeline for filing response and rejoinder.Analysis:The judgment pertains to a second motion petition seeking sanction for a scheme of arrangement. The Court had previously passed an order in connection with the first motion application. The Official Liquidator, Registrar of Companies, and the Central Government through the Regional Director were directed to be served notice. The Official Liquidator's counsel accepted the notice, and the Assistant Registrar of Companies accepted notice on behalf of the Regional Director. The petitioner was instructed to provide a copy of the petition to the concerned parties within a week. The Official Liquidator and the Regional Director were ordered to file their response/report within six weeks, with a provision for rejoinder within four weeks thereafter.Furthermore, the petitioner was directed to publish a notice of the hearing in specified newspapers and on relevant websites as per the Companies (Court) Rules, 1959. The petitioner was required to supply a copy of the advertisement to the Regional Director. The case was listed for hearing on a specific date, providing a clear timeline for the next steps in the legal process. The judgment ensures procedural compliance and transparency in the sanctioning process for the scheme of arrangement, emphasizing the importance of serving notice to relevant parties, filing responses within specified timelines, and publishing hearing notices as per legal requirements.