DCM ESTATES AND INFRASTRUCTURE LIMITED Vs. STATE

JUDGEMENT

(1.) This petition filed under Section 391 and 394 of the Companies Act (hereinafter referred to as 'the Act') seeks the sanctioning of the Scheme of Restructuring of the petitioner company, i.e., DEIL. In May, 2000, an application, CA 829/2000 was filed by the petitioner company for convening the meetings of shareholders and creditors of the company for approving the Scheme of Restructuring.

(2.) As per the prayer made in C.A. No. 829/2000, on 26th May, 2000, this Court directed the convening of meetings of secured creditors, unsecured creditors & shareholders on 14th July, 2000. Notice of the said meetings were duly published in the manner prescribed under the Act and on 14th July, 2000 the meetings were held. In the said meeting Clause 20(xvi) was proposed to be modified by addition of the phrase"prior to the implementation of the sanctioned scheme or any part thereof" which clause earlier read as "Parties will enter into definitive agreements in respect of the real estate project." The two resolutions, one to modify the scheme and the second resolution for approval of the scheme with the above modifications were approved by more than the requisite majority of the three-fourth in number and value of the shareholders and the creditors of the company and were accordingly reported to this Court by the Chairpersons of the said meetings.

(3.) On 31st July, 2000 the present petition, CP 251/2000 was filed under Sections 391 to 394 of the Act seeking sanction and the approval of the scheme. This Court on 1st August, 2000 issued notice to the Official Liquidator (OL), attached to this Court and the Regional Director, Department of company Affairs, Northern Region, Kanpur as well as the creditors and shareholders of the petitioner company by way of the prescribed publication in Statesman and Veer Arjun. By the Reports dated 11th October, 2000, both the Official Liquidator and the Regional Director, Department of Company Affairs have not indicated any objection to the proposed scheme.