TaxTMI 
TaxTMI 
2012 (10) TMI 829
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....ation of the Company permits the reduction of its share capital. 3. The petitioner submits that on 19.01.2001 the Shareholders of the petitioner Company passed a resolution to allot 1,50,03,000 equity shares of Rs.10/- each on swap basis to the Shareholders of M/s. Patel Agro Farms Private Limited. As the allotment was made on swap basis, there was no outlay of funds. 4. The petitioner further submits that after allotment of the shares, the petitioner submitted an application to the Bombay Stock Exchange for listing of the said shares. The said application, however, came to be rejected by the Bombay Stock Exchange (BSE) on 04.09.2003. The appeal filed before the Security Appellate Tribunal also came to be disposed of on 24.09.2003 wit....
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....der Section 101(2) of the Act on the ground that since there are no outlay funds, the creditors of the petitioner-Company are not affected or put to any prejudice. 9. The petitioner submits that on the bonafide belief that this Court permitted the petitioner to publish the notice of petition, the petitioner published the notice of petition in local daily (1) Indian Express (English Daily Newspaper) and the (2) Lok-Satta- Jan Satta (Gujarati Daily Newspaper), both Ahmedabad Editions and an affidavit is also filed in support thereof. 10. The petitioner, thereafter, filed Company Application No.462 of 2011 seeking an order to the effect that the procedure as contemplated under Section 101(2) of the Act is dispensed and the publication of....
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....e sole Secured Creditor, consents of Unsecured Creditors having value of debt of 80.83% of the total value of debts and the consents of the deposit holders with value of deposit amounts of 89.31% of the total value of deposit amounts with the petitioner Company. The petitioner also produced a certificate dated 27.02.2012 given by R. Chaudhary and Associates, Chartered Accountants certifying this aspect. This Court, by order dated 02.03.2012 passed in O.J. Civil Application No.69 of 2012, allowed the petitioner to place on the record of the present petition, the consent letters of the sole Secured Creditor, Unsecured Creditors and deposit holders, along with the order dated 02.03.2012 and other orders referred to hereinabove. 13. In view ....
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....at as there was no outlay of funds, the interest of the creditors is not adversely affected, therefore, the procedure as contemplated under Section 101(2) of the Act is not required to be followed. Without prejudice to the above and without prejudice to the order dated 02.03.2012 made by this Court in Civil Application No.69 of 2012, the petitioner has already obtained and produced on record, the requisite consent letters of the creditors. The Court has perused the affidavit filed on behalf of the Registrar of Companies and upon perusal of the same it is found that the petitioner has effectively met with the observations made on behalf of the Registrar of Companies in its affidavit-in-rejoinder and further affidavit. 17. In view of the a....