https://www.taxtmi.com/caselaws?id=352069 The Bombay HC upheld the Central Government's order for compulsory amalgamation of loss-making wholly owned subsidiary NSEL with profit-making holding company FTIL under Section 396(3) of the Companies Act in public interest. The court found no breach of natural justice principles, constitutional violations under Articles 14, 19, or 300A, or procedural irregularities. The amalgamation was deemed necessary following NSEL's collapse causing Rs. 5600 crores default to trading clients, with warehouses containing only Rs. 358 crores stock against claimed Rs. 2389.36 crores. The court applied Wednesbury reasonableness test and doctrine of proportionality, concluding the government's decision balanced stakeholder interests while protecting national economic confidence in commodity exchanges. en-us Mon, 04 Dec 2017 00:00:00 +0530 Thu, 26 Jun 2025 12:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=352069 The Bombay HC upheld the Central Government's order for compulsory amalgamation of loss-making wholly owned subsidiary NSEL with profit-making holding company FTIL under Section 396(3) of the Companies Act in public interest. The court found no breach of natural justice principles, constitutional violations under Articles 14, 19, or 300A, or procedural irregularities. The amalgamation was deemed necessary following NSEL's collapse causing Rs. 5600 crores default to trading clients, with warehouses containing only Rs. 358 crores stock against claimed Rs. 2389.36 crores. The court applied Wednesbury reasonableness test and doctrine of proportionality, concluding the government's decision balanced stakeholder interests while protecting national economic confidence in commodity exchanges. Case-Laws Companies Law Mon, 04 Dec 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=352069