LORDS CHLORO ALKALI LTD. Vs. STATE

JUDGEMENT

(1.) THE petitioner, Lords Chloro Alkali Ltd. (formerly known as Modi Alkalies and Chemicals Ltd.) filed this petition under Sections 391 and 394 of the Companies Act, 1956 (hereinafter shall be referred to as 'the Act of 1956'), for sanction of scheme of arrangement so as to be binding on all the secured creditors of the petitioner, i.e., respondents herein.

(2.) THE petitioner -company was incorporated on March 1,1979, in the State of Punjab originally under the name and style of Modi Alkalies and Chemicals Ltd. Subsequently in the year 1979 itself, the registered office of the petitioner was shifted to Industrial Area, Alwar (Rajasthan). The name of the petitioner -company was subsequently changed to Lords Chloro Alkalies Ltd. on February 1, 2003.

(3.) THE petitioner -company filed Company Application No. 43 of 2006 for convening meeting of its secured creditors. This Court vide its order dated August 18, 2006, directed to convene meeting of the secured creditors on September 9, 2006, but the said meeting could not be conducted as on account of delay in calling the meeting. The petitioner -company filed application and on the application this Court further directed to call the meeting of the secured creditors, vide order dated September 1, 2006 and the meeting was directed to be convened on September 30, 2006. In the absence of Shri Suresh Pareek, chairman appointed by the court the meeting was adjourned and was notified to be held on October 7, 2006. In the meeting held on October 7, 2006, the scheme was supported and approved by D and DARC, SSPL and CCPL who jointly constitute more than 86.94 per cent, of the total secured creditors, while RIICO and UTI opposed the scheme and submitted their objections whereas IIBI had not attended the meeting. The petitioner -company submitted that more than 93.22 per cent, of the secured creditors present and voting agreed to the scheme of arrangement. The petitioner -company averred that more than three -fourth of the total secured creditors agreed for sanctioning scheme of arrangement.