2020 (9) TMI 850

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....me before the Tribunal to oppose the Petition and nor has any party controverted any averments made in the Petition. 2. The Learned Authorised Representative for the Petitioner Company submits that Article 9 of the Articles of Association of the Petitioner Company empowers the Petitioner Company to reduce its capital in any manner permitted by law from time to time by passing a Special Resolution in any manner for the time being authorized by law. 3. The Learned Authorised Representative for the Petitioner Company submits that the Board of Directors of the Company, at their meeting held on 21st September, 2019, have deemed it appropriate, subject to the approval of the shareholders, to reduce the equity share capital by reducing the p....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....) The proposed payout is to the tune of Rs. 71,39,450/- whereas, the company is having cash and cash equivalents of Rs. 52,325/- only as per balance sheet as at 30.06.2019 and negative profit and loss to the tune of Rs. 63,44,49,150/- as per balance sheet as at 31.03.2019 attached to the petition, therefore the company is not having resources to meet the proposed payout. The applicant may be put to explain the proposed sources to meet the requirements of payout. (b) Applicant to submit an Affidavit to the effect that the interest of the creditors and all the stakeholders and Government Revenue are protected as well as statutory dues are paid off. (c) The tax implications if any arising out of the proposal for reduction is ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ional Director has filed a supplementary report dated 3rd March, 2020 with the NCLT Mumbai Bench. The Regional Director has provided following comments: Para No. Observations of the Regional Director Reply by the Company Comments of the Regional Director 8(a) The proposed payout is to the tune of Rs. 71,39,450/- whereas, the company is having cash and cash equivalents of Rs. 52,325/- only as per balance sheet as at 30.06.2019 and negative profit and loss to the tune of Rs. 63,44,49,150/- as per balance sheet as at 31.03.2019 attached to the petition, therefore the company is not having resources to meet the proposed payout. The applicant may be put to explain the proposed sources to meet the requirements of payout. The ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....l comply with all the applicable provisions of the Income Tax Act, 1961 and all tax issues, if any, arising out of the Petition will be met and answered in accordance with the law and further, the decision of the Income tax Authority will be binding on Petitioner Company, subject to right of appeal available to the Petitioner Company under applicable laws. Reply of the Company is Satisfactory 9. Apropos comments in Para 8(a) of the Supplementary Report of Regional Director is concerned, the Learned Authorised Representative appearing on behalf of the Petitioner Company submits that the Petitioner Company has made sufficient arrangements to discharge the consideration of Rs. 71,39,450/- to the shareholder in pursuant to the capital red....