IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR. ::: Company Petition No.2/2008 with Company Application No.4/2007. ::: Date of Order: 9.3.2010 HON'BLE MR. PRAKASH TATIA,J. Mr.Dinesh Mehta, for the petitioner. ... Heard learned counsel for the petitioner. The present Company Petition has been filed to obtain sanction of this Court to the Scheme of Compromise and Arrangement between the company and its secured creditors comprising of Banks & Financial Institutions, having pari-passu joint equitable mortgage of the properties of the company. According to the said Scheme of Arrangement, the Petitioner Company will make a payment of Rs.214.75 lacs out of the total outstanding amount of Rs.1290 lacs resulting into waiver of Rs.1080 lacs. Earlier vide Order dated 22/1/2008 passed in Company Application No.4/2007 preferred by the Petitioner, this Court directed to hold and convene meeting of secured creditors of the Petitioner Company for the purposes of considering, and if thought fit, approving with or without modification, the said Scheme of 2 Arrangement and Compromise. This Court had appointed Shri Arun Bhansali as Chairman of the meeting. Notice of the meeting was also advertised in Rajasthan Patrika Daily (all editions) on 21/2/2008. In pursuant to the Order of this Court, a meeting of secured creditors was convened on 15/3/2008 at Hotel Days International, Sardarpura, Udaipur at 10.00 am. The Scheme of Arrangement as modified by the Petitioner Company was unanimously approved and carried by requisite majority by the secured creditors of the Petitioner Company. I have perused the Report dated 25/3/2008 filed by Shri Arun Bhansali, the Chairman appointed for this purpose. By the Order dated 6/5/2008 passed in the present Company Petition, notices were directed to be issued to the Central Government through Regional Director, Department of Company Affairs. Notices were also ordered to be published in two newspapers. The Petitioner Company has filed copies of the notices published in daily newspapers; as directed by this Court. The Petitioner Company has also filed postal receipts sending the notices to Regional Director, Department of Company Affairs, Noida. Thereafter vide Order dated 13/10/2009, this Court has ordered that the 3 notices be sent to the secured creditors separately as much time had passed since the secured creditors had resolved to approve the scheme. Learned counsel for the petitioner had filed the Postal Receipts sending the notices vide registered post and acknowledgment thereof. In pursuant to the notices issued to the Regional Director, Shri R. Vasudevan, Regional Director, Northern Region, Ministry of Corporate Affairs, A-14, Sector 1, Noida has filed his affidavit/report. I have perused the report filed by the Regional Director, wherein it has been stated that Central Government has no objection with respect to the Scheme of Arrangement, if sanctioned by this Court. Nobody has filed any objection or opposed the sanction of the said scheme. In this view of the matter, this Hon’ble Court holds that there are no grounds or circumstances to refuse to grant approval. On going through the Scheme, I am satisfied that the requirements of provisions of Section 391 of the Companies Act are satisfied. The Scheme appears to be genuine and bonafide and in the interest of creditors of the Petitioner Company. Accordingly, this company petition is allowed and the Scheme of Arrangement and Terms & Conditions as modified, placed as Annexure-6 of 4 the Company Petition is sanctioned. The relief given in Para No. 19 (a) & (b) of the Company Petition No. 2/2008 are hereby granted. The modified scheme (Annexure-6) of the Petition shall form part of this order. The Petitioner Company will make upfront payment/adhoc initial payment of Rs.20.00 lacs as shown in Column No.6 of the Scheme and mentioned in Para No.2 of the Scheme on or before 31st March, 2010. The subsequent payments will be made in accordance with the payment schedule given in the Scheme. (PRAKASH TATIA), J. S.Phophaliya