KIRLOSKAR ELECTRIC CO. LTD. Vs. STATE

JUDGEMENT

(1.) COMPANY Petition No. 97/2002 is filed by Kirloskar Electric Company Ltd. to obtain sanction of this Court to the scheme of arrangement whereby the Company may be restructured by addressing its weaknesses and by leveraging the internal assets of the Company, to reduce outside liabilities on manufacturing operations, rationalise the debt burden on manufacturing units to long term sustaining level, rationalise the work force and bring the employee cost in line with the industry norms, restore bank ability of business units and achieve long term viability under given economic and industry scenario.

(2.) UNDER the scheme of arrangement, the petitioner -Company, namely, Kirloskar Electric Company Limited, would be the transferor Company and the Kaytee Switchgear Pvt. Ltd. and Best Trading and Agencies Limited, are the transferee companies. For the purpose of brevity, Kirloskar Electric Company Limited is referred to as the 'Company' or (KECL) in this order.

(3.) THE object of the Company is 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 electricity motors, alternators, traction equipment, rotating machines, transformers, switch gears, voltage regulators, industrial electronics, automotive controls, etc., and other manufacturing activity as set out in the Memorandum and Articles of Association.