Court : Karnataka
Decided on : Jul-06-2007
Reported in : 141CompCas296(Kar); (2008)2CompLJ72(Karn); 97SCL51(Kar)
..... an affidavit on 30.3.2007 giving up the prayer for dispensing the creation of a debenture redemption reserve and they have undertaken to comply with section 117(c) of the companies act and create a debenture redemption reserve fund for redemption of such debentures and all adequate amounts would be credited to the said account from out of the profits ..... redemption of such debentures, to which adequate amounts shall be credited, ..... , under section 117(c)(1) of the act, where a company issues debentures, it shall create a debenture redemption reserve for the ..... amount proposed to be utilized by the company exceeds the amount prescribed under the aforesaid rules. further it is stated that the bonus debentures issued out of reserves of the company is against the provisions of section 77 of the companies act, 1956 as subscription to securities issued by the company are funded from the company's sources. lastly it was contended that .....Tag this Judgment!
Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : Mar-27-2007
Reported in : (2007)111TTJ(Mum.)385
..... company's assets or secured by appointing of trustees, as the case may be. this creation of the charge on ..... between debentures, shares and dividends. debentures are securities, whether they are secured by way of a charge on the ..... .the first grievance of the assessee relates to confirmation of disallowance of debenture issue expenditure amounting to rs. 5,21,22,533 on the ground that it is capital in nature.2. the brief facts of the case are that the appellant assessee is a public limited company registered under the companies act, 1956. it is a manufacturer and supplier of benzoate plasticizers, benzoic ..... has observed that the term "debenture" is not a technical term nor a term of art but in its ordinary sense denotes one of the modes for borrowing money by any company in exercise of its borrowing powers.7. the learned counsel for the assessee while referring to sections 117a, b, 118 and 119 of the companies act contended that there is clear distinction .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-21-2007
Reported in : AIR2008Bom16; 2007(3)ALLMR491; 77SCL92(Bom)
..... could be paid off as would the other beneficiaries. though afl was to propose the scheme under section 391 of the companies act before the high court in a petition for its revival and rehabilitation and was to pay off the debenture holders upon such scheme being sanctioned, afl/kotak made payment of the ots amount of rs. 35.35 crores which represented ..... entire principal amount and the contractual rate of interest till the filing of the suit by the debenture trustees on behalf of even those debenture holders. the said letter awaits the approval of all the creditors of the company, before a scheme under section 391 of the companies act can be proposed. such approval of all the creditors would, therefore, be for similar ots proposal ..... for revival and reconstruction of afl under section 391 of the companies act. they contend that the misrepresentation practiced upon them was in as much as they were subsequently informed that similar ots proposal was offered to the other debenture holders where as they learnt later from an affidavit filed by another debenture holder bank of baroda (bob) in writ petition no. 328 of ..... the high court under section 391 of the companies act, 1956 and shall make payment of the sum of rs. 32.95 crores after the scheme is approved by the high court. 16. a further letter dated 9th november, 2005 of afl to dena bank for the ots shows that they had approached other debenture holders with similar ots proposal as offered to .....Tag this Judgment!
Court : SEBI Securities and Exchange Board of India or Securities Appellate Tribunal SAT
Decided on : Mar-01-2007
Reported in : (2007)77SCL86SAT
..... of india). we shall refer briefly to the facts of this case.3. the appellant is a company incorporated under the provisions of companies act, 1956. it came out in april - may 1997 with a public issue of 33,45,000 secured optionally fully convertible discounted debentures of rs. 200 each for cash issued at a discounted price of rs. 160 aggregating to rs ..... . 5,352 lacs. the face value of the debenture was rs. 200 and it was offered at a discounted ..... exercised the equity option whereas the remaining large majority opted for getting them converted into non-convertible debentures with 19 per cent interest. it is alleged that with a view to enable large number of debenture holders to convert their debentures into equity of the company, the company and its promoters manipulated the price of the share in the market so that the conversion price ..... becomes higher. what is alleged is that the company and its directors with their own funds purchased the shares of the .....Tag this Judgment!
Court : Company Law Board CLB
Decided on : Aug-20-2007
Reported in : (2008)144CompCas830
..... investor or the securities and exchange board of india, if the transfer of shares or debentures is in contravention of any of the provisions of the securities and exchange board of india act, 1992 (15 of 1992).or regulations made thereunder or the sick industrial companies (special provisional act, 1985 (i of 1986), or any other law for the time being in force, ..... a company shall he freely transferable, provided that if a company without sufficient cause refuses to register transfer of shares within ..... within two months from the date of transfer of any shares or debentures held by a depository or from the date on ..... virtue of section 43a of this act.section 111a dealing with rectification of register on transfer runs as follows: (1) in this section, unless the context otherwise requires "company" means a company other than a company referred to in sub-section (14) of section 111 of this act. (2) subject to the provisions of this section, the shares of debentures and any interest therein of .....Tag this Judgment!
Court : Delhi State Consumer Disputes Redressal Commission SCDRC New Delhi
Decided on : Oct-22-2007
..... who were issued debentures at the agreed rate of interest are entitled to get an amount in terms ..... was no contract between the parties while issuing the debentures that in case company goes into liquidation or becomes sick the consumer shall not be entitled to any amount except through proceedings under company act or receiver or official liquidaotor. the remedy under sick company act is an independent remedy available to a company and not to the consumer and moreover the persons ..... of contract between the parties. where the company becomes defunct or sick, it is not attributable to ..... seek compensation for the deficiency of service or for unfair trade practice for mental agony, harassment, etc, neither the provisions of the companies act are applicable nor provision of section 22(1) of the sick industrial companies (special provisions ) act, 1985 are applicable. 8. in this regard, following decision of supreme court are noteworthy and are as under: iii. scope of .....Tag this Judgment!
Court : Punjab and Haryana
Decided on : Mar-13-2007
Reported in : 139CompCas33(P& H); 81SCL308(Punj& Har)
..... the agreement before the high court they were also entitled to interest as provided under section 205a(4) of the companies act.considering the nature of the dispute and the claim of the complainants to recover interest on the dividend/interest on debenture since 1986 onwards, which apparently appears to be stale, is not required to be dealt with or decided under the ..... rs. 1.51 crores deposited before this hon'ble court, had the same amount been deposited by the respondent-company with the central government in compliance of the provisions of the companies act, 1956.8. that this hon'ble court ought to direct the respondent company to pay to the petitioners the amount accrued thereon as interest for the period during which the respondent ..... for the entire period starting from 1988 till date, despite having repeated requests.16. that the petitioners who are also the holders of non-convertible debentures as stated in para 7 above on which the respondent company had to pay an interest at the rate as set out in para 8 have also not been paid to the petitioners. that the said ..... defaults in depositing the unpaid interest and dividend before the central government in compliance of the provisions of the companies act.4. the other grievance of learned counsel for the appellants is that the impugned order does not deal with the prayer as set out in the application.5. the impugned .....Tag this Judgment!
Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : May-22-2007
..... of the case. with regard to the contention of the assessee that the subject warrants of essar shipping ltd. are of the nature of shares and debenture, the learned commissioner opined that in the companies' act the type of instruments called warrants does not find a place and it requires to be examined if the subject warrants could at all be likened to ..... and equated with shares and debentures. moreover, the hurry in which the assessee company go itself rid off 4 crores warrants itself would give those "value-less" items a ..... act, 1922. drawing our attention further to the definition of the speculative transaction under section 43(5) the learned counsel for the assessee ..... for shares was property and, therefore, a capital asset within the meaning of section 2(4a) of the indian income tax act, 1922 and the amount realised by the assessee by sale of the right to subscribe for shares in the managed company amounted to a relinquishment of a capital asset for the purposes of section 12b of the indian income tax .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Aug-24-2007
Reported in : AIR2007SC3079; IV(2007)BC491(SC); 2008(2)BomCR344; 2007BusLR1(SC); 139CompCas418(SC); JT2007(10)SC389; (2008)149PLR408; 2007(10)SCALE298; (2007)7SCC753; 78SCL48
..... court. it is submitted that neither of those appellants are creditors, contributories or debenture holders and are total strangers to scml and they have nothing to do with the proposal and acceptance of the scheme under section 391 of the companies act read with sections 392 and 393 of that act. this contention is sought to be met by the appellants in these appeals ..... fresh approval obtained therefore. the fact that no member or creditor opposed it in court cannot be considered as a substitute for following the requirements of section 391 of the companies act for approval of the compromise or arrangement as now modified or proposed to be modified. in miheer h. mafatlal v. mafatlal industries ltd. (supra), this court had insisted that the ..... suffers from a vital defect of being one in excess of the authority of the division bench of the high court and not in consonance with the terms of the companies act. it is seen that some objection was sought to be raised by rangnath somani regarding the proposals contained in the affidavits filed on behalf of lbpl, which proposals were accepted ..... care of all the liabilities of scml and also contemplates the setting up of some viable industry in any part of maharashtra by the company. this was enough to recognize a scheme under section 391 of the companies act. it was not feasible to revive the mills as a whole as was clear from the materials and in that context what was possible .....Tag this Judgment!
Court : Company Law Board CLB
Decided on : May-29-2007
Reported in : (2008)142CompCas152
..... of special resolutions as determined by the d.k. group in respect of the following matters (c) the company purchasing its own securities in accordance with the companies act, 1956. (e) issue of shares to a creditor to convert debentures or loans to shares of the company; by virtue of clause vii(1) of the spa, the vendors have agreed that they shall exercise their ..... , the shares retained by the spr group representing 30% of the paid up capital shall be treated as a separate class of shares in terms of section 106 of the companies act 1956 and rights of the above shares will be restricted as under the above shareholder (spr group) shall not interfere in the day-to-day management and running of the ..... voting rights so as to allow the passing of special resolutions in respect of the matters specified supra and that the articles of association of the company ..... members controlling 100% shares of m/s spr sugars private limited ("the company") aggrieved on account of certain acts of oppression and mismanagement in the affairs of the company at the instance of the second respondent have invoked the equitable jurisdiction of the company law board under sections 397 and 398 of the companies act, 1956 seeking the following reliefs (i) to declare that the respondents .....Tag this Judgment!