KRISHIRAJ TRADING LIMITED Vs. STATE

JUDGEMENT

(1.) This petition filed by the petitioner Companies for sanction of the scheme of arrangement between Krishiraj Trading Limited (Transferor Company 1), Welspun Fintrade Private Limited (Transferor Company 2), Welspun Mercantile Limited (Transferor Company 3), Welspun Wintex Limited (Transferor Company 4), Goldenarch Estates Private Limited (Transferor Company 5), Welspun Infra Developers Limited (Transferor Company 6), WS Trading and Holding Private Limited (Transferor Company 7) and MGN Agro Properties Private Limited (Transferee Company) and their respective shareholders and creditors under Sections 391 to 394 read with sections 100 to 103 of the Companies Act, 1956 and other applicable provisions, if any, of the Companies Act, 1956 and Companies Act, 2013.

(2.) Since the eight petitions are in relation to the common scheme, they were heard together and are disposed of by this common judgment.

(3.) It is the case of the petitioners that all the petitioners belong to the same management and are part of the Welspun Group. The Scheme would have following benefits: Consolidation and simplification of the group structure; Elimination of multilayered and crossheld entities; Reduce post operating and compliance cost; Streamlining the group structure; Achieving operational and management efficiency and Synergies arising out of consolidation of business, such as, enhancement of net worth of the combined business to capitalize on future growth potential, optimal utilization of resources. The petitions give in detail the benefits envisaged in the Scheme.