Company Acquiring Society: NCLT Approval Needed?

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This discussion clarifies whether a government company acquiring a society, which is registered under the Societies Registration Act, requires sanction from the NCLT under the Companies Act. The consensus is that NCLT approval is not needed as a society is legally distinct from a company and does not fall under the Companies Act's merger provisions. Therefore, the acquisition is not considered a merger between companies requiring NCLT sanction.

abhijit majumder

abhijit majumder (Querist)
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28 July 2025 Sir
A Govt Company (registered under Companies Act) acquire a society (which shown as a project of the Government)
.My query is as the society is not come under Companies Act does such acquisition require sanction from NCLT under Companies Act?
Regards
Abhijit

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 July 2025 NCLT approval is required when a "scheme of arrangement" or merger/amalgamation is proposed between two or more companies under sections 230-232 of the Companies Act, 2013.
A society registered under the Societies Registration Act is legally distinct from a company under the Companies Act. Societies do not fall under the jurisdiction of the Companies Act or NCLT’s merger/amalgamation provisions.
The acquisition of a society by a government company is not a merger between companies within the meaning of the Companies Act, so the process and mandatory NCLT sanction do not apply.

abhijit majumder

abhijit majumder (Querist)
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29 July 2025 Sir
My sincere thanks to you for your view particularly it confirm my thought.
Abhijit

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 July 2025 Good Luck...

abhijit majumder

abhijit majumder (Querist)
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29 July 2025 Sir
My sincere thanks to you for your view particularly it confirm my thought.
Abhijit

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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