JINDAL INDIA LIMITED Vs. STATE

JUDGEMENT

(1.) By this application filed u/S. 391(1) of the Indian Companies Act, 1956 (the "Act") applicant seeks directions for convening, holding and conducting the meeting of its equity shareholders and, if necessary, of its secured and unsecured creditors for the purpose of considering and if thought fit approving with or without modifications the proposed Scheme of Amalgamation of Mehrotra Properties Ltd. with the applicant.

(2.) The only question for consideration for the present is whether at this stage notice is required to be issued to the Central Govt. so that the court may take into consideration the representation if made by the Govt. before passing any order u/S 391(1) of the Act. Mr. Khaitan submits that at this stage notice is not required to be issued to the Central Govt. and in support of the submission reliance is placed upon two decisions, one of Calcutta and another of Madras High Court. The further submission is that in such matters, in the past, this court has not been directing issue of notice to the Central Govt. at this stage. The court, in the past, has been issuing notice to the Central Govt. on filing of petition u/S. 391(2) of the Act and, therefore, as per past practice, at this stage of consideration of application u/S. 391(1) notice to Central Govt. is not required to be issued.

(3.) The requirement to send notice to Central Govt. is contained in S. 394-A of the Act which reads :