IN RE Vs. ACCUMULATE VANIJYA LIMITED

JUDGEMENT

(1.) The object of this application is to ultimately obtain sanction of this Tribunal to the proposed Scheme of Amalgamation whereby ACCUMULATE VANIJYA LIMITED, DHANVINE VANIJYA LIMITED and ZAMEEN TRADERS PRIVATE LIMITED would be amalgamated with KHUSHWANT ENTERPRISES PRIVATE LIMITED whereby the entire business, all the properties, rights and claims whatsoever of ACCUMULATE VANIJYA LIMITED, DHANVINE VANIJYA LIMITED and ZAMEEN TRADERS PRIVATE LIMITED and their entire undertakings together with all rights and obligations relating thereto is proposed to be transferred to and vested in KHUSHWANT ENTERPRISES PRIVATE LIMITED on the terms and conditions fully stated in the said Scheme of Amalgamation, a copy whereof is annexed with the application and marked "I".

(2.) It is stated in the petition that M/s. ACCUMULATE VANIJYA LIMITED and M/s. DHANVINE VANIJYA LIMITED are the wholly owned subsidiaries of M/s. KHUSHWANT ENTERPRISES PRIVATE LIMITED and entire shareholding of M/s. ZAMEEN TRADERS PRIVATE LIMITED is being held by M/s. ACCUMULATE VANIJYA LIMITED and M/s. DHANVINE VANIJYA LIMITED. In effect, the M/s. ACCUMULATE VANIJYA LIMITED and M/s. DHANVINE VANIJYA LIMITED and M/s. ZAMEEN TRADERS PRIVATE LIMITED become the wholly owned subsidiaries of M/s. KHUSHWANT ENTERPRISES PRIVATE LIMITED.

(3.) All the companies belong to the common group. They have common directors as well as common shareholders. M/s. ACCUMULATE VANIJYA LIMITED and M/s. DHANVINE VANIJYA LIMITED and M/s. ZAMEEN TRADERS PRIVATE LIMITED need to economies on overhead expenses and multiplicity of paper work. It has been thought desirable and advisable that M/s. ACCUMULATE VANIJYA LIMITED and M/s. DHANVINE VANIJYA LIMITED and M/s. ZAMEEN TRADERS PRIVATE LIMITED and M/s. KHUSHWANT ENTERPRISES PRIVATE LIMITED amalgamate affording them an opportunity to reorganize their resources and economies on their expenses to be better able to withstand the competitive market position.