TORRENT ENERGY LIMITED Vs. STATE

JUDGEMENT

(1.) These are the petitions filed by three companies for the purpose of obtaining sanction of this court to a composite scheme of amalgamation of two transferor companies, i.e. Torrent Energy Limited and Torrent Cables Limited with Torrent Power Limited, the Transferee Company, proposed under section 391 to 394 of the Companies Act, 1956.

(2.) It has been submitted that all the companies in the proposed scheme belong to the same group of management, i.e. Torrent group. They are all engaged into the complimentary commercial activities, i.e. power generation, transmission and distribution activities. Hence, the Board of Directors of these Companies have decided to amalgamate these companies with the primary objective of consolidation of the activities. As contended by the petitioners, the proposed amalgamation is expected to result in the following benefits:

(3.) It has been further pointed out that the two companies, i.e. Torrent Cables Limited and Torrent Power Limited are listed public limited companies, and the shares are listed on Bombay Stock Exchange Limited for both the companies, and National Stock Exchange of India Limited for the Transferee Company. In compliance with clause 24(f) of the listing agreement, the petitioner company had already approached the concerned stock exchanges, and the approvals/clearances obtained from the said exchanges had been placed on record.