IN THE HON’BLE HIGH COURT OF HIMACHAL PRADESH, SHIMLA. Company Petition No.5 of 2008. Date of decision : 28.05.2008. In the matter of: Scheme of Arrangement of : GPI Textiles Limited. ….Petitioner-Company Coram: The Hon’ble Mr. Justice Dev Darshan Sud, J. Whether approved for reporting?1 For the petitioner-Company: Mr.B.C. Negi, Advocate. For the respondent: Dev Darshan Sud, J. This petition has been moved under Sections 391, 392, 393 and 394 of the Companies Act, 1956 read with Rules of the companies (Court) Rules, 1959 (hereinafter referred to as the `Act’ and `Rules’), with a prayer that this Court sanction the scheme of arrangement (Annexure P-1) so as to be binding on all the equity shareholders, all category of preference shareholders, secured creditors and unsecured creditors of the Company. Prior to the filing of the present petition, Company Petition No.3 of 2008 was filed with a prayer that the meeting of the equity shareholders, 1 Whether Reporters of Local Papers are allowed to see the judgment? 2 Cumulative Redeemable Preference (CRPS-1), Cumulative Redeemable Preference Shareholders (CRPS-2) and Cumulative Redeemable Preference Shareholders (CRPS- 3), and also Secured and Un-secured Creditors, was ordered to be held to approve the Scheme (Annexure P-1 with this petition). Permission for holding of the meeting was granted and the report(s) of the Chairman of each meeting has been placed on the record showing that the Scheme of Arrangement was approved in its entirety without any modification. In the present petition a prayer is made that the Scheme of Arrangement (Annexure P-1) be sanctioned so as to binding on all the equity shareholders, all category of preference shareholders, secured and unsecured creditors of the Petitioner Company. Notices of this petition were issued to the Regional Director, who in response to the notice issued, has submitted that after examination of the Scheme, the Central Government has no objection to the proposed Scheme. The Official Liquidator also filed an affidavit stating therein that there is no objection to the Scheme of Arrangement as filed. Notices in terms of Rule 80 of the Rules were also published in “Indian Express” and “Divya Himachal” on 12th May, 2008. Notice of the petition has been given to the public at large calling upon any objection to the arrangement sought to be made by the petitioner. No objection(s) having been filed, the Central 3 Government and the Official Liquidator also having approved the Scheme, I do not see any reason as to why the Scheme of Arrangement (Annexure P-1) cannot be sanctioned. I am satisfied that the affairs of the Company are not being carried out in a manner which is prejudicial to the interest of the shareholders / creditors. In this eventuality, this petition is allowed. The Scheme of Arrangement (Annexure P-1) is hereby sanctioned and approved and declared binding on all categories of equity shareholders, all category(s) of preference shareholders, secured and unsecured creditors of the Petitioner-Company. This order will be subject to any other order which shall be made by the Court of competent jurisdiction. This petition is accordingly disposed of. May 28, 2008 (Dev Darshan Sud) (aks) Judge.