TaxTMI Login
AI Drafter - (New and Powerful) ✕
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Just a moment...
AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the meeting of secured creditors, which could not be held for want of quorum and absence of creditors, should be reconvened; and whether such reconvening could be ordered in exercise of the Tribunal's powers under the company law framework.
Analysis: The Application showed compliance with the earlier directions for convening the meeting, and the chairperson's report confirmed that the meeting did not take place only because no secured creditor was present when the meeting was called and reconvened. The Tribunal noted that the failure to hold the meeting was not attributable to any default on the part of the applicant companies, but occurred due to reasons beyond their control. Referring to the scheme provisions under the Companies Act, 2013, the relevant arrangement and amalgamation rules, and the Tribunal's inherent power under Rule 11 of the NCLT Rules, 2016, the Tribunal held that no prejudice would be caused by permitting a fresh meeting so that the secured creditors could express their assent or dissent to the proposed scheme.
Conclusion: The meeting of secured creditors was ordered to be reconvened and the application was allowed.
Ratio Decidendi: Where a meeting directed to be held under the company law scheme process fails to take place for reasons beyond the applicant's control, the Tribunal may direct a reconvened meeting in exercise of its inherent and procedural powers, if no prejudice is caused to the stakeholders.
TaxTMI 
