ESSAR STEEL LTD Vs. STATE

JUDGEMENT

(1.) The petitioner, namely, Essar Steel Limited has filed this petition under Section 78 and 100 to 103 of the Companies Act, 1956 before this Court seeking following prayers :- (a) That the reduction of the share capital of the Petitioner by cancellation of part of equity share capital being 20,47,33,113 (Twenty Crore Forty Seven Lacs Thirty Three Thousand One Hundred and Thirteen) equity shares of the face value of Rs.10/- and fresh issuance of preference shares in lieu thereof as resolved by the special resolution of the Petitioner at its 27th Annual General Meeting held on July 19, 2003 be confirmed and passed by this Hon'ble Court; (b) That the proposed Minutes as set out in Para 14 hereinabove, be approved; (c) That the procedure laid down under Section 102

(2.) and (3) of the Act, as regards the creditors be dispensed with, on such terms as the Hon'ble Court may deem fit; (d) That the Petitioner be dispensed with the use of the words "and reduced"; 2. The capital of the petitioner Company as per the latest audited balance-sheet as on 31.03.2003, when the present petition was filed, are as follows :- SHARE CAPITAL AS ON 31.03.2003 Authorised : Rs. 150,00,00,000 Equity Shares of 1500,00,00,000 Rs. 10/- each 1,00,00,000 Redeemable Cumulative Preference shares of Rs.100/- each 100,00,00,000 ________________ 1600,00,00,000 ================ Issued & Subscribed 33,42,12,890 Equity shares of Rs. 10/- each 334,21,28,900 Paid up : 33,42,12,890 Equity Shares of Rs. 10/- each 330,34,99,589

(3.) In Annual General Meeting held on 19.07.2003, the authorised capital was raised from Rs.1,600 Crores to Rs.5,000 Crores. The Company has consequently allotted 17,76,19,893 Equity Shares of Rs. 10 each fully paid up to Essar Investments Limited and as such status of Authorised, Issued and Paid capital as on 01.08.2003 was as follows :- Authorised :- <FRM>JUDGEMENT_195_TLGJ0_2005Html1.htm</FRM>