https://www.taxtmi.com/caselaws?id=99549 A court-directed purchase of shares in an oppression-mismanagement proceeding under sections 397, 398 and 402 of the Companies Act, 1956 is treated as a distinct route from reduction of capital under sections 100 to 104. On that basis, prior notice to creditors was not mandatory before the order directing purchase and consequential reduction of share capital, especially where the valuation mechanism accounted for existing, contingent and anticipated liabilities. Notice to the Central Government under section 400 was also not required again in the appellate stage because notice had already been issued at the trial stage before final disposal of the company petition. The consent order was therefore upheld as legally valid. en-us Fri, 16 Dec 1977 00:00:00 +0530 Fri, 18 Aug 2017 12:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=99549 A court-directed purchase of shares in an oppression-mismanagement proceeding under sections 397, 398 and 402 of the Companies Act, 1956 is treated as a distinct route from reduction of capital under sections 100 to 104. On that basis, prior notice to creditors was not mandatory before the order directing purchase and consequential reduction of share capital, especially where the valuation mechanism accounted for existing, contingent and anticipated liabilities. Notice to the Central Government under section 400 was also not required again in the appellate stage because notice had already been issued at the trial stage before final disposal of the company petition. The consent order was therefore upheld as legally valid. Case-Laws Companies Law Fri, 16 Dec 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=99549