KIRLOSKAR ELECTRIC COMPANY LIMITED Vs. NIL

JUDGEMENT

(1.) KIRLOSKAR Electric Company has filed this company petition under sections 391 to 394 of the Companies Act, 1956 ('act', for short), inter alia requesting this Court to sanction the scheme of arrangement annexed as Annexure-B to the petition, so that the same becomes binding on all the shareholders, creditors of the petitioner-company as well as on the petitioner-company.

(2.) THE petitioner-company was incorporated as a public limited company on 26th day of July, 1946 under the provisions of the Mysore companies Act, 1938, under the name and style of M/s. Kirloskar Electric Company Limited. Its registered office is situate at the Industrial suburb, Rajajinagar, Bangalore. The authorised share capital of the company is Rs. 700,000,000 (Rupees seven hundred million) divided into 40,000,000 (forty million) equity shares of Rs. l6/- each and 3,000,000 (three million) preference shares of Rs. 100/- each. The issued, sub-scribed and paid up share capital is Rs. 25,268,817 (twenty-five million two hundred and sixty-eight thousand eight hundred and seventeen)equity shares of Rs. 10/- each and 1,800,000 (one million eight hundred thousand) preference shares of Rs. 100/- each. The main object for which the company was incorporated was to manufacture electric apparatus and appliances required for or capable of being used in connection with the generation, distribution, supply, accumulation and employment of electricity, produce a wide range of electrical motors, alternators, traction equipments, rotating machines, transformers, switchgears, voltage regulators, industrial electronics, automotive controls, etc.

(3.) THE petitioner-company has explained the reasons, which necessitated the formation of the scheme and also the benefits under the scheme to the company, to its shareholders and creditors. They are: