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

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... Subject:- 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 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 whereunde....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....idator's report was adverse and ordered for 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 shoul....