MALANPUR STEEL LIMITED Vs. SPICE JET LIMITED

JUDGEMENT

(1.) Company Petition No. 385 of 2003 was filed by M/s Royal Holding Services Limited (RHSL) under Section 391-394 of the Companies Act for revival/restructuring of M/s Royal Airways Ltd. (earlier known as Modiluft and presently known as Spice Jet). It was second motion under the aforesaid provisions after convening the meetings of different traders on the directions of this Court in earlier proceedings filed by RHSL under Section 391(1) of the Act. It was stated that meetings of Inter-Corporate Depositors and Staff Creditors were held and the scheme was approved by the Staff Creditors unanimously and by Inter- Corporate Depositors by a majority of more than 3/4th. On this basis of approval/sanction of the scheme for compromise with the Creditors was sought. The Regional Director as well as Official Liquidator gave their no objection to the proposed scheme. However, three persons filed their objections namely S.K. Modi Group, Malanpur Steel Ltd. and Paradise Credit Pvt. Ltd.

(2.) Matter was heard at length which resulted in passing of orders dated 15th July, 2005. Vide this order, objections of the aforesaid three objectors were rejected and scheme was sanctioned by this Court. Co. Appl. No. 1130/2005 has been filed by Malanpur Steel Ltd. (hereinafter referred to as 'Malanpur') seeking review of orders dated 15th July, 2005.

(3.) Though, number of objections were raised by Malanpur, what is relevant for the purposes of the present review petition is that the basic objection of the Malanpur was that it is a decree-holder and is thus wrongly classified as Inter Corporate Depositor and it should have been classified as a decree-holder and the decretal amount should have been treated at the principal amount.