ATN INTERNATIONAL LIMITED Vs. STATE OF WEST BENGAL

JUDGEMENT

(1.) This is an application under sections 100, 101, 102 and 103 of the Companies Act, 1956, hereinafter referred to as the said Act for confirmation of the Special Resolution for reduction of the share capital of the petitioner, hereinafter referred to as the Company, by reducing the face value of equity shares from Rs. 10 per share to Rs. 4 per share, as resolved in the Extra Ordinary General meeting of the Company held on 17th January. 2005.

(2.) The company, which was previously engaged in capital market activity and in running a wind power project, now carries on media and entertainment related business.

(3.) By reason of the crash in the capital market, rush of depositors to prematurely withdraw and/or en-cash their fixed deposits with the Company, and the non functioning of the wind power project of the Company from August 1997 onwards, the Company incurred huge losses. The Company had to dispose of its fixed assets to raise funds to discharge its liabilities towards repayment of public deposits.