KANTH SOLUTIONS PVT. LTD Vs. STATE

JUDGEMENT

(1.) THIS second motion joint petition has been filed under Sections 391 and 394 of the Companies Act, 1956 (for short 'the Act') by the petitioner Companies seeking sanction of the Scheme of Arrangement (for short Scheme).

(2.) THE Petitioner Companies had earlier filed CA (M) No. 85/2012 seeking directions of this Court for dispensation/convening of meetings. Vide order dated 08.05.2012 this Court allowed the Application and dispensed with the requirement of convening meetings of Shareholders, Secured and Unsecured Creditors of the Petitioner Companies.

(3.) THAT the observation of learned Regional Director in para No. 5 is about the income of companies. This fact has already been stated in detail in the petition. Secondly, the provisions of Companies Act do not come in conflict with the determination of share price. However, the Companies Act puts restriction only on shares issued at discount not on premium. It is more investors' perspective that justifies the premium. So far as the question of Sundry Debtors is concerned, it is stated in petition that all funds were lying idle, hence these were invested in other companies and later on these investments were realized. However, as consideration was not received at the time of transaction took place, hence they were shown as Sundry Debtors in balance sheet.