GOVERNMENT OF INDIA Vs. JINDAL INDIA LIMITED

JUDGEMENT

(1.) By this application Filed under Section 391(1) of the Indian Companies Act, 1956 (for short the "Act") the 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 Government so that the court may take into consideration the representation if made by the Government before passing any order under Section 391(1) of the Act. Mr. Khaitan submit that at this stage this notice is not required to be issued to the Central Government 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 Government at this stage. The Court, in the past, has issuing notice to the Central Government on filing of petition under Section 391(2) of the Act and, therefore, as per past practice, at this stage of consideration of application under Section 391(1) notice to Central Government is not required to be issued.

(3.) The requirement to send notice to Central Government is contained in Section 394-A of the Act which reads as under:-