NCLT Updates

Background In a recent ruling, a petition was filed by Modern Hi-Rise Private Limited (“the Company”) before the National Company Law Tribunal (“NCLT” or “The Tribunal”), Kolkata Bench, seeking approval for Reduction of Share Capital under Section 66 of the Companies Act, 2013 and Variation of Terms of Redeemable Preference Shares under Sections 48, 52, […]

A Typical Demerger Structure In a typical demerger structure, a distinct division or undertaking say, Business B is carved out from an Existing Company (Demerged Company) and transferred as a going concern to a newly formed or existing Resulting Company through a court-approved Scheme of Arrangement. The Resulting Company, in turn, issues its shares directly […]

Background of the case In a recent ruling the NCLT had examined a scheme involving selective capital reduction and distribution of assets-based payouts by an Indian company (‘the Company’). The scheme involves distributing of shares held in few subsidiaries (assets held by the Company) to four identified investors (‘the Investors’) as compensation for the reduction […]

Background In a recent case, a petition was filed by Kolhapur Steel Limited (“the Company” or “Transferor Company”) before the National Company Law Tribunal (“NCLT” or “The Tribunal”), Mumbai Bench, seeking approval for the scheme of amalgamation between the Company and Karad Projects and Motors (“Transferee Company”) under Sections 230 to 232 of the Companies […]