* IN THE HIGH COURT OF DELHI AT NEW DELHI COMPANY JURISDICTION + COMPANY APPLICATION (MAIN) No.53 of 2008 % DATED 31.03.2008 In the matter of the: Companies Act, 1956 And Applications under Sections 391(1), 393 & 394 of the Companies Act, 1956 Scheme of Arrangement of: Swen Realty and Media Ltd. ... Applicant/Transferor Company With DMC International Ltd. ... Applicant/Transferee Company Through: Mr. Rajeev K Goel, Advocates VIPIN SANGHI, J. (ORAL) 1. This is a joint application under Section 391(1) read with Sections 393 and 394 of the Companies Act, 1956 (hereinafter referred to as the Act) by applicants Swen Realty and Media Ltd.(Applicant/Transferor Company) with DMC International Ltd. (Applicant/Transferee Company) seeking directions from the Court for convening, holding and conducting separate meetings of the equity shareholders, secured and unsecured creditors, which are statutorily required for sanctioning the scheme of arrangement for amalgamation of applicant companies . 2. The registered office of the Applicant/Transferor CO.A.(MAIN) No.53 of 2008 Page 1 of 7 company is situated at H-108, 2nd Floor, Opposite Hotel Marina, Connaught Place, New Delhi-110001 and that of Applicant/Transferee company is at F-25, Lajpat Nagar-I, New Delhi-110019 , that is, within the jurisdiction of this Court. 3. The Board of Directors of both the Applicant companies have passed separate resolutions approving the scheme of arrangement on 2.11.2007, copies of which have been filed on record. 4. Both the Applicant companies have filed their respective Memorandums and Articles of Association along with the application. The audited balance sheets of both the Applicant Companies as on 31.3.2007 have been filed on record. 5. The Transferee company and the Transferor company have also filed the scheme of amalgamation and salient features of the amalgamation have been incorporated and detailed in the application. 6. The applicant companies have stated that no proceedings under Sections 235 to 251 of the Act are pending against the Transferor company and Transferee company. 7. The Applicant/Transferee Company was incorporated on 30.06.1984 and the authorized share capital of the Transferee company is Rs.4 crores divided into 80 lacs equity shares of Rs.5/- each. The issued, subscribed and paid up share capital of the Applicant/Transferee Company is Rs.3,72,50,000/- divided into 74,50,000 equity shares of Rs.5/- each. CO.A.(MAIN) No.53 of 2008 Page 2 of 7 8. The Applicant/Transferor Company was incorporated on 16.10.1997 and the authorized share capital of the Transferor company is Rs.11,60,00,000/- divided into 2,32,00,000 equity shares of Rs.5/- each. The issued capital of the Transferor Company is Rs.11,59,98,000/- divided into 2,31,99,600 Equity shares of Rs.5/- each, while, the subscribed and paid up share capital of the Transferor company is Rs.10,03,12,000 divided into 2,00,62,400 equity shares of Rs.5/- each. 9. The Applicant/Transferor Company has 3 unsecured Creditors. All the unsecured creditors have given their consents in the writing and the same has been filed on record. Thus it is just and equitable to dispense with the holding of the meeting of the Unsecured Creditors of the transferor company, which is otherwise required for considering, and if thought fit, approving the scheme of amalgamation of the applicant companies. 10. The Applicant/Transferor company does not have any secured creditors. Thus it is just and equitable to dispense with the holding of the meeting of the secured Creditors of the transferor company, which is otherwise required for considering, and if thought fit, approving the scheme of amalgamation of the applicant companies. 11. The Applicant/Transferee company has 1 secured creditor, who has given his consent to the scheme of amalgamation, which have been filed on record. Considering the aforesaid, it is just and equitable to dispense with the holding of the meeting of the CO.A.(MAIN) No.53 of 2008 Page 3 of 7 secured creditor of the Transferee company, which is otherwise required for considering, and if thought fit, approving the scheme of amalgamation of the applicant companies. 12. The Applicant/Transferee Company has 8 unsecured Creditors. All the unsecured creditors have given their consents in the writing, the same has been filed on record. Thus it is just and equitable to dispense with the holding of the meeting of the Unsecured Creditors of the transferee company, which is otherwise required for considering, and if thought fit, approving the scheme of amalgamation of the applicant companies. 13. The Applicant/Transferor company has 626 equity shareholders. The applicant has sought the holding of the meeting of its equity shareholders for considering, and if thought fit, approving the scheme. Considering the facts and circumstances, the meeting of the equity shareholders of the Transferor company, be held on 10.05.2008 at 4.30 pm, at 2nd Floor, Tarachand Chamber, 196 A, Ramesh Market, Main Road Garhi, East of Kailash, New Delhi-110065. I appoint Shri Sanjeev Dubey, Advocate Mobile No.9810062521, as the Chairperson and Sh. Lakshay Sawhney, Advocate Mobile No.9810339689, as the Alternate Chairperson for the meeting of the equity shareholders of the Transferor company. The quorum for the said meeting shall be 30 equity shareholders in number constituting 20% in value of the total equity share capital. The Chairperson and the Alternate Chairperson shall ensure that the notices convening the meeting of equity CO.A.(MAIN) No.53 of 2008 Page 4 of 7 shareholders of the applicant company along with copies of scheme and statement under Section 393 of the Companies Act, 1956, shall be sent to the equity shareholders of the Transferor company by UPC at their registered or last known addresses at least 21 days before the date appointed for meeting, in their presence or in the presence of their authorized representatives. The notice shall also be published in newspapers 'The Financial Express' (English edition) and ‘Jansatta’ (Hindi edition) in terms of the Companies (Court) Rules, 1959, at least 21 days before the day appointed for the meeting. 14. The Applicant/Transferee company has 5326 equity shareholders. The applicant has sought the holding of the meeting of its equity shareholders for considering, and if thought fit, approving the scheme. Considering the facts and circumstances, the meeting of the equity shareholders of the Transferee company, be held on 10.05.2008 at 3.30 pm, at 2nd Floor, Tarachand Chamber, 196 A, Ramesh Market, Main Road Garhi, East of Kailash, New Delhi-110065. I appoint Shri Ravi Gupta, Advocate Mobile No.9810006918, as the Chairperson and Shri Girish Aggarwal, Advocate Mobile No.9811114489, as the Alternate Chairperson for the meeting of the equity shareholders of the Transferee company. The quorum for the said meeting shall be 200 equity shareholders in number constituting 20% in value of the total equity share capital. The Chairperson and the Alternate Chairperson shall ensure that the notices convening the meeting of equity shareholders of the applicant company along with copies of scheme and statement under Section 393 of the Companies CO.A.(MAIN) No.53 of 2008 Page 5 of 7 Act, 1956, shall be sent to the equity shareholders of the Transferee company by UPC at their registered or last known addresses at least 21 days before the date appointed for meeting, in their presence or in the presence of their authorized representatives. The notice shall also be published in newspapers 'The Financial Express' (English edition) and ‘Jansatta’ (Hindi edition) in terms of the Companies (Court) Rules, 1959, at least 21 days before the day appointed for the meeting. 15. In both the aforesaid meetings, voting by proxy shall be permitted, if prescribed form duly signed by the person entitled to attend and vote at the meeting is filed with the registered office of the applicant company at least forty eight hours before the meeting. The chairpersons and the alternate chairpersons shall also ensure that the proxy registers are properly maintained and they shall inspect the same from time to time. In case the quorum for any of the aforesaid meeting is not met, then the meeting shall be adjourned by 30 minutes and then the members present and voting shall constitute the required quorum. For the purpose of quorum, the valid proxies shall also be considered. 16. The fees of each of the Chairpersons for the meeting aforesaid shall be Rs.45,000/- and the fees of each of the Alternate Chairpersons shall be Rs.35,000/- in addition to meeting their incidental expenses. The Chairpersons appointed by this Court shall file their report within two weeks from the date of holding of the meeting. The Alternate Chairpersons shall also attend the meeting CO.A.(MAIN) No.53 of 2008 Page 6 of 7 and assist the respective Chairperson in conducting the meeting and in filing the report. 17. The Chairpersons and the Alternate Chairpersons shall be at the liberty to issue directions to the management of the Applicant companies so that meetings of the Equity Shareholders are conducted in a just, free and fair manner. 18. The application is allowed in terms of the above order. Dasti. March 31 , 2008 (VIPIN SANGHI) aj JUDGE CO.A.(MAIN) No.53 of 2008 Page 7 of 7