LAWS(BOM)-2007-3-139

IMP POWER LTD Vs. STATE OF MAHARASHTRA

Decided On March 29, 2007
IMP POWERS LTD. Appellant
V/S
STATE Respondents

JUDGEMENT

(1.) In this proceeding, the consent of the court is sought to a scheme of an arrangement in exercise of powers conferred by Sections 391 to 394 of the Companies Act, 1956.

(2.) As on September 30, 2005, 47.2 per cent, of the issued and subscribed share capital of the petitioner was held by promoters, 21.20 per cent, by financial institutions and 31.60 per cent, by members of the public. As on June 30, 2005, according to the petitioners, there was an outstanding of nearly Rs. 68 crores due to the secured creditors. The petitioners proposed a scheme of compromise and arrangement with the secured creditors. On December 23, 2004, the Corporate Debt Restructuring Cell granted its approval to the proposal made by the petitioners and appointed a monitoring committee in order to sort out the outstanding issues and for monitoring the implementation of the reconstruction package.

(3.) In pursuance of the orders passed by this court, a meeting was convened of the secured creditors on May 20, 2006. The report of the scrutinizer sets out that out of the eight secured creditors who attended the meeting, seven who had a total outstanding of Rs. 6204.62 lakhs voted in favour of the scheme of compromise/arrangement. Induslnd Bank Ltd. which is also a secured creditor voted against the scheme. According to the petitioners, the outstandings, due and payable to Induslnd Bank were Rs. 409.53 lakhs. This has been contested by the bank and according to the bank, the correct amount due as on June 30, 2005, stood at Rs. 625.63 lakhs. Induslnd Bank Ltd. has instituted proceedings before the Debts Recovery Tribunal under the provisions of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 for the recovery of its dues. The proceeding initiated by the bank (O.A. No. 253 of 2005) is pending before the Debts Recovery Tribunal, Mumbai.