HIGH STREET FILATEX LTD Vs. STATE

JUDGEMENT

(1.) Instant company petition has been filed U/s 101 of Companies Act, 1956 (Co. Act) by M/s High Street Filatex Ltd (the Company) seeking confirmation of reduction in its share capital U/Ss 100, 102 to 104 of the Co. Act.

(2.) The Company was incorporated on 24/05/1994 and granted Certificate of commencement of business on 05/05/1995. As per Special resolution having ben passed at Annual General Meting held on 10th July, 2009, share holders of the Company with the consent, approved reduction of share capital of the Company as being no longer represented by its assets. Pursuant to order passed by this Court on 19/02/2010, a notice in Form NO.5 appended to R.25 of Company (Court) Rules, 1959 was published and after its publication in daily news papers Hindustan Times (Delhi & Rajasthan Editions) on 15/03/2010 and Dainik Bhaskar (All Rajasthan Edition) on 17/03/2010, to which there was no objection raised and when the matter came up on 01/04/2010, this Court considered it appropriate to grant one more opportunity and further directed to place on record copy of notices published (supra) before next date (15/04/2010), on which date, application placing additional documents on record was allowed and mater was posted for orders on 22/04/2010.

(3.) Having heard Counsel for the Company and with his assistance examined the material on record, this Court is satisfied that the proposed reduction in Share Capital is neither discriminatory to any share holder nor in any manner is prejudicial to rights of creditors; and provisions of Sub-section (2) to S.101 of Co. Act would not apply to the proposed reduction. Accordingly, this Court do hereby order ad infra: