IN RE : VAIBHAV GLOBAL LIMITED Vs. STATE

JUDGEMENT

(1.) The matter comes up on a petition filed under Sec. 52 of the Companies Act, 2013 (hereinafter 'the Act of 2013') [corresponding to Sec. 78 of the Companies Act, 1956 (hereinafter the Act of 1956'), read with 100, 101, 102, 103 and 104 of the Act of 1956, seeking approval of the court for reduction of the share premium account of the petitioner company as per the special resolution passed by the requisite majority of its equity shareholders.

(2.) The petitioner company was incorporated on 8-5-1989 under the Act of 1956 as VAIBHAV GEMS LIMITED and in its new avtar consequent to change of its name is known as VAIBHAV GLOBAL LIMITED. A fresh certificate of the company's incorporation indicating its present name was issued on 29-11-2012. Aside of the main objects of the petitioner company under its Memorandum of Association which relate to varied activities of dealing in gems and jewellery, the ancillary objects of the company include investments of different kinds.

(3.) The petitioner company incurred significant losses in its businesses primarily from a diminution of its investments in its subsidiaries in the preceding years as of 31-3-2015 and as per its balance sheet had accumulated losses to an extent of Rs.264, 27, 18,509 (Rupees Two hundred and sixty four crores twenty seven lacs Eighteen thousand Five Hundred nine only) reflected in the surplus/ (deficit) head of Reserves and Surplus. However also as of 31-3-2015 the petitioner company's Securities Premium Account showed a surplus of Rs.589, 72, 28,735 (Rupees Five hundred and Eighty Nine crores Seventy Two lacs Twenty Eight thousand Seven Hundred Thirty Five only).