MODERN SYNTEX INDIA LTD Vs. STATE

JUDGEMENT

(1.) THIS petition under Section 391(2) of the Companies Act, 1956 (in short 'Act of 1956') has been filed seeking sanction of scheme of compromise to be binding on all the secured creditors of the petitioner -company Modern Syntex (India) Ltd.

(2.) THE petitioner -company was incorporated on 23 -5 -1989 under the provisions of Companies Act, 1956 as a part of Modern Group of Companies. The authorised share capital of the petitioner -company is Rs. 12,500 lakhs (Rupees twelve thousand five hundred lakhs) divided into 12,50,00,000 equity shares of Rs. 10 each. The issued, subscribed and paid up share capital of the petitioner -company is Rs. 15,821.66 lakhs (Rupees fifteen thousand eight hundred and twenty one lakhs) divided into 11,34,98,333 equity shares of Rs. 10 and 15,00,000 16 per cent cumulative redeemable preference shares of Rs. 100 each fully paid up).

(3.) VIDE order dated 12 -8 -2005 passed in Company Application No. 47 of 2005 filed by the petitioner -company meeting of secured creditors was convened on 20 -9 -2005. The notice of the meeting was published in two newspapers Rajasthan Patrika and Times of India on 26 -8 -2005 and 27 -8 -2005. The meeting was attended by 25 secured creditors. One secured creditor Bank of Baroda abstained from voting. The compromise was read and explained to the meeting and the scheme was approved by majority of 18 votes representing 77.27 per cent in value of the total value of debts as against 6 votes representing 22.73 per cent in the value of the total value of debts. It appears that the scheme of compromise has been approved by the requisite majority of the secured creditors representing more than 3/4th in value of the total debts as required under the Companies Act.