Leading Treadecom Pvt. Ltd. Vs. Swarnim Paaper and Traders Pvt. Ltd. - Court Judgment

Excerpt:
the court : leave is given to the petitioner to correct the scheme and the petition in accordance with paragraph 2[e][i] of the affidavit. two usual observations/objections have been made by the central government in their affidavit, regarding sanction of the scheme. the first is with regard to insufficient authorized capital of the transferee company to allot shares to members of the transferor companies; the second objection/observation is with regard to accounting standard 14. learned counsel for the petitioner assures the court that the authorized capital of the transferee company will be increased expeditiously and that the said accounting standard would also be adhered to. on the basis of such assurance and on such condition, this objection is overruled. regarding the pending prosecution i would say that the pendency of prosecution will not hold up sanction of the scheme. prosecution may be continued against the persons involved. i also note that it has been recorded in the affidavit that the concerned returns and balance sheets have already filed by the transferor companies. accordingly, this application is allowed by passing orders in terms of prayers [a] to [k] of the petition. the petitioner is to pay a consolidated cost of 200 gms. to the central government. in the event the petitioners supply a legible computerized print out of the scheme and the schedule of assets in acceptable form to the department, the department will append such computerized print out, upon verification, to the certified copy of the order without insisting on a handwritten copy thereof. all parties concerned are to act on a signed photo copy of this order on the usual undertakings.

Judgment:
The Court : Leave is given to the petitioner to correct the scheme and the petition in accordance with paragraph 2[e][i] of the affidavit.

Two usual observations/objections have been made by the Central Government in their affidavit, regarding sanction of the scheme. The first is with regard to insufficient authorized capital of the transferee company to allot shares to members of the transferor companies; the second objection/observation is with regard to accounting standard 14.

Learned counsel for the petitioner assures the Court that the authorized capital of the transferee company will be increased expeditiously and that the said accounting standard would also be adhered to. On the basis of such assurance and on such condition, this objection is overruled.

Regarding the pending prosecution I would say that the pendency of prosecution will not hold up sanction of the scheme. Prosecution may be continued against the persons involved. I also note that it has been recorded in the affidavit that the concerned returns and balance sheets have already filed by the transferor companies. Accordingly, this application is allowed by passing orders in terms of prayers [a] to [k] of the petition.

The petitioner is to pay a consolidated cost of 200 GMs. to the Central Government. In the event the petitioners supply a legible computerized print out of the scheme and the schedule of assets in acceptable form to the department, the department will append such computerized print out, upon verification, to the certified copy of the order without insisting on a handwritten copy thereof.

All parties concerned are to act on a signed photo copy of this order on the usual undertakings.