https://www.taxtmi.com/caselaws?id=379794 The SC held that the Central Government's compulsory amalgamation order under Section 396 of the Companies Act, 1956 was ultra vires and violated Article 14. The court ruled that the Central Government's satisfaction regarding public interest must be based on relevant facts and appear from the order itself. Public interest in amalgamation context means combining resources for general community benefit, impacting production, consumption, and employment. The government failed to demonstrate that amalgamation was essential for public interest. The court emphasized that members and creditors must retain equivalent interests post-amalgamation, with compensation for any reduction, and proper appeal procedures must be followed before amalgamation orders are finalized. en-us Tue, 30 Apr 2019 00:00:00 +0530 Thu, 26 Jun 2025 13:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=379794 The SC held that the Central Government's compulsory amalgamation order under Section 396 of the Companies Act, 1956 was ultra vires and violated Article 14. The court ruled that the Central Government's satisfaction regarding public interest must be based on relevant facts and appear from the order itself. Public interest in amalgamation context means combining resources for general community benefit, impacting production, consumption, and employment. The government failed to demonstrate that amalgamation was essential for public interest. The court emphasized that members and creditors must retain equivalent interests post-amalgamation, with compensation for any reduction, and proper appeal procedures must be followed before amalgamation orders are finalized. Case-Laws Companies Law Tue, 30 Apr 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=379794