TaxTMI 
TaxTMI 
2022 (10) TMI 1015
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....of the Companies Act, 2013 seeking permission to issue further redeemable preference shares for a period of 5 years equal to the amount due, including the dividend thereon, in respect of the unredeemed preference shares and allow to treat the unredeemed preference shares shall be deemed to have been redeemed. 2. The Brief facts in a nutshell is narrated herein below: - 2.1 The Petitioner is a Company incorporated on 23 July 1997 under the Companies Act, 1956 with CIN U55101KL1997PTC011649 engaged in the business of running hotels and resorts. 2.2 The authorized share capital of the Company is Rs 2,540,000,000 divided into 211,850,000 Equity shares of Rs 10 each and 42,150,000 Preference Shares of Rs 10 each. The paid-up capital of ....
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....th January 2012 and the due date for redemption was extended by another 6 years vide special resolution dated 06th January 2012. Accordingly, the due date for redemption of the said 12.5% Preference Shares fell due on 10th January 2018. The due date was further extended for a period of 4 years from 10th January 2018 to 10th January 2022 by this Tribunal vide order dated 2nd September 2019 in TCA/22/KOB/2019. 2.6 Due to Covid-19 Pandemic and the fact that the Company did not have enough profits after depreciation to provide for the dividend pay-out forced the Board to recommend for initiation of Section 55(3) petition for the issue of further preference shares in respect of the unredeemed preference shares. The Company vide Board Meeting ....
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....unredeemed 12.5% 9150000 cumulative redeemable preference shares of Rs. 10 each, along with the dividend, if any, to the existing shareholders on the same terms and conditions and the due date of redemption be fixed as 5 years from the date of issue as 10th January 2022 RESOLVED FURTHER TO submit a request before the Preference Shareholders for obtaining their consent to extend the period of redemption for a further term of 5 years. RESOLVED FURTHER THAT Mr M M Abdul Basheer, Director of the Company be and is hereby authorized to do all acts and deeds in order to carry out the decision of the Board of Directors of the Company and to execute all documents, affidavits, submissions and any other matter as are required to file....
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....inal amount of the shares to be redeemed, to a reserve, to be called the Capital Redemption Reserve Account, and the provisions of this Act relating to reduction of share capital of a company shall, except as provided in this section, apply as if the Capital Redemption Reserve Account were paid-up share capital of the company; and (d) (i) in case of such class of companies, as may be prescribed and whose financial statement comply with the Accounting Standards prescribed for such class of companies under section 133, the premium, if any, payable on redemption shall be provided for out of the profits of the company, before the shares are redeemed: Provided also that premium, if any, payable on redemption of any preference s....
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....preference shares or the redemption of preference shares under this section shall not be deemed to be an increase or, as the case may be, a reduction, in the share capital of the company. (Notified on 01-06-2016) (4) The capital redemption reserve account may, notwithstanding anything in this section, be applied by the company, in paying up unissued shares of the company to be issued to members of the company as fully paid bonus shares. Explanation. -For the purposes of sub-section (2), the term "infrastructure projects" means the infrastructure projects specified in Schedule VI 6. In order to see whether the Petitioner has followed the procedure prescribed in the Rules, we have also gone through the consent affidavit f....