No order to be made by High Court for dissolution of transferor company unless official liquidator makes report to the effect that affairs of company have not been conducted in a manner prejudicial to interests of its members

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....h Court for dissolution of transferor company unless official liquidator makes report to the effect that affairs of company have not been conducted in a manner prejudicial to interests of its members It has been reported by the official liquidator attached to the Bombay High Court that there has been a practice followed by the Bombay High Court whereunder the Court sanctions the scheme of amalgam....

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.... dissolution of the transferor company without winding up. A reading of section 394 and its proviso will indicate that the practice followed by the Bombay High Court in some cases in sanctioning the scheme of amalgamation without simultaneously making any order for the dissolution of the transferor company without winding up is permissible but it should not be allowed to enfeeble the administrati....