IN RE: QUICK FLIGHT LTD. Vs. STATE

JUDGEMENT

(1.) These are the petitions filed by two companies viz. Quick Flight Limited and Shreno Limited, for the purpose of obtaining the sanction of this Court to a Scheme of arrangement in the nature of Demerger and Transfer of the demerged Undertaking viz. Aviation Undertaking of Quick Flight Limited to Shreno Limited, as well as Restructure of Share Capital of Quick Flight Limited, the Demerged company, proposed under Sections 391 and 394 read with Sections 100 to 103 of the Companies Act, 1956. It has been submitted that Quick Flight Limited, the Demerged Company is a wholly owned subsidiary of Shreno Limited, the Resulting Company. It has been pointed out that the demerged Company is engaged in the business of providing chartered aviation services for commercial and non-commercial purposes, hiring and leasing aircrafts as well as paper printing and providing packaging solutions.

(2.) On the other hand, Shreno Limited, the Holding Resulting Company is engaged in several areas of commercial activities viz. glass manufacturing and trading, providing engineering solutions and real estate business. It is a substantially profit making Company.

(3.) It has been realized by the management of the Demerged Company that the activities undertaken by it require different focus considering its market segments. Different strategies and different management skills are required to achieve growth rate for these two segments. In order to achieve efficiency of operations and realigning the business operations the two activities need to be segregated. Thus, the proposed demerger is a commercial requirement and it is envisaged that it would be beneficial to the companies as well as the stakeholders. The petitions give in detail the commercial advantages that would flow by virtue of the proposed demerger.