Share capital reduction confirmed where shareholders approved the scheme, procedure was followed, and no regulatory objection was raised.

Reduction of paid-up equity share capital was sanctioned where the company had passed the requisite special resolution, complied with the prescribed procedure, published notice, and faced no objection from the Regional Director. The proposal was treated as non-prejudicial to creditors, and the registered minute was approved accordingly. Consequential relief was also granted on the company's name, so it was not required to add the words "and reduced" after the sanctioned reduction. The material principle is that a duly approved and procedurally compliant reduction of share capital may be confirmed together with incidental reliefs.

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Issues: (i) Whether the reduction of the petitioner company's paid-up equity share capital, approved by special resolution, should be confirmed. (ii) Whether the petitioner company should be required to add the words "and reduced" to its name.

Issue (i): Whether the reduction of the petitioner company's paid-up equity share capital, approved by special resolution, should be confirmed.

Analysis: The reduction was sought under the provisions governing reduction of share capital, pursuant to a special resolution of the equity shareholders and the prescribed minute. The court noted the company's compliance with the procedural requirements, publication of notice, and the absence of objection from the Regional Director. The proposal was also stated not to prejudice creditors.

Conclusion: The reduction of the paid-up equity share capital was confirmed in favour of the petitioner.

Issue (ii): Whether the petitioner company should be required to add the words "and reduced" to its name.

Analysis: The court approved the proposed minute and accepted the relief sought in relation to the company name, in view of the sanctioned reduction.

Conclusion: The petitioner company was not required to add the words "and reduced" to its name.

Final Conclusion: The petition succeeded and the capital reduction was sanctioned with consequential approval of the registered minute and name-related relief.

Ratio Decidendi: Where a reduction of share capital is duly approved by the shareholders, complies with the statutory procedure, and attracts no objection from the regulatory authority, the court may confirm the reduction and grant consequential reliefs.

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