IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION COMPANY PETITION NO.154 OF 2005 CONNECTED WITH COMPANY APPLICATION NO.154 OF 2005 In the matter of Companies Act, 1956 And In the matter of Reduction of Equity Share Capital Account of Concorde Motors Limited Concorde Motors Ltd. .. Petitioner Shri S.B.Jijina with Shri Samir Samant i/b. Mulla & Mulla & Craigie Blunt & Caroe for the petitioner CORAM: S.U.KAMDAR, J DATE : 1ST APRIL 2005 P.C.: 1. The present petition is filed for reduction of share capital. It is proposed that the share capital of the petitioner be reduced from Rs.24,35,00,000/- (Rupees Twenty Four Crores Thirty Five Lacs Only) divided into 2,43,50,000 Equity Shares of Rs.10/- each to Rs.50,00,000/- (Rupees Fifty Lacs Only) divided into 5,00,000 Equity Shares of Rs.10/- each, fully paid up and utilize an amount of Rs.23,85,000/- (Rupees Twenty Three Crores Eighty Five Lacs only) out of the balance standing in the Share Capital Account of the Petitioner Company for adjusting the Debit Balance standing in the Profit & Loss Account as at February 1, 2005. 2. In para 14 of the petition, reasons are set out for the proposed reduction of capital that the company was required to take fair value of the assets in respect of expense base of the petitioner company. It is also provided that the company business is required to be restructured and accordingly the said adjustment was necessary. There were accumulated huge loss in the Profit & Loss Account which has been adjusted against the said capital. In para 17 of the petition it has been averred that the reduction of the share capital will not cause any prejudice to the creditors of the company and that it does not involve either the diminution of any liability in respect of unpaid capital. The said reduction is only by way of adjustment. By my order dt.11.3.05 petitioner company was directed to invite any objection from any of the creditors in respect of such proposed scheme of reduction of share capital. Such an advertisement has been issued and affidavit of service dt.11.3.05 along with publication has been tendered. Inspite of the said advertisement no objection has been received. In view thereto petition is made absolute in terms of prayer clause (a) and (b).