Hearing Set for Business Arrangement Approval; Notices Must Be Served & Advertised in Advance. The National Company Law Tribunal, Jaipur Bench, has scheduled a hearing for the approval of the Scheme of Arrangement for 08.04.2020. The Tribunal ...
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Hearing Set for Business Arrangement Approval; Notices Must Be Served & Advertised in Advance.
The National Company Law Tribunal, Jaipur Bench, has scheduled a hearing for the approval of the Scheme of Arrangement for 08.04.2020. The Tribunal directed the petitioner companies to advertise the hearing notice in specified newspapers at least ten days prior and serve notices to relevant authorities and objectors within stipulated timelines. An affidavit confirming service of notices must be filed seven days before the hearing. Authorities may file objections before the hearing date, and non-filing will imply no objection. Compliance with Section 230(7) of the Companies Act is required, including filing an auditor's certificate before the hearing.
Issues: Fixing date of hearing for main Company Petition, publication in press, issuance of notices to authorities, objections to Scheme of Arrangement
The judgment delivered by the National Company Law Tribunal, Jaipur Bench pertains to a Company Petition filed by three petitioners jointly, seeking directions for the hearing of the main Company Petition and related matters. Initially, a motion was filed for dispensing with the meetings of Equity Shareholders, Secured Creditors, and Unsecured Creditors for the applicant companies, which was granted by the Tribunal. Subsequently, a second motion was filed within the prescribed timeline, leading to the current petition. The Tribunal now orders the fixing of the date of hearing for the approval of the Scheme on 08.04.2020. The notice of the hearing is mandated to be advertised in specific newspapers at least ten days before the hearing date. Additionally, each petitioner company must serve notices on various authorities, including the Central Government, Income Tax Authorities, Registrar of Companies, and Sectorial Regulators, among others, thirty days before the hearing date. If the scheme is exempted under the Competition Act, 2002, an affidavit to this effect must be provided. Notices must also be served to Objectors or their representatives at least fifteen days before the hearing date. An affidavit of service must be filed seven days before the hearing date. Authorities to whom notices have been given may file objections to the Scheme before the hearing date; failure to do so may imply no objection. The petitioner company must comply with the proviso to Sub-Section (7) of Section 230 by filing a certificate of the Companies' Auditor before the hearing date. The next hearing is scheduled for 08.04.2020 for the consideration of the Scheme of Arrangements between the petitioner companies and their shareholders and creditors.
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