Firm to merge with an existing private company

Refer:  1.  Corporatisation-of-Non-Corporate-Entity

& 2.   Ahemdabad Bench NCLT, case Kediya Ceramics [IA No. 254/NCLT/AHM/2017 in CA(CAA) No. 95/NCLT/AHM/2017] order dated 22.09.2017 

Direct merger not possible, & its not slump sale.

Originally posted by : Dhirajlal Rambhia
	Refer:  1.  Corporatisation-of-Non-Corporate-Entity & 2.   Ahemdabad Bench NCLT, case Kediya Ceramics [IA No. 254/NCLT/AHM/2017 in CA(CAA) No. 95/NCLT/AHM/2017] order dated 22.09.2017

Dear Sir,

Is this judgement as per the intent of the law?

I think the law is being interpreted literally and it is substantially decreasing the scope of the other provision of the same Act and the other Act and is also adding to absurdity. Partnership firm is as such not allowed to amalgamate with a company but it can do so indirectly by first converting the firm into the company and then amalgamation/succession is allowed. Whereas the erstwhile provisions of Companies Act 1956, allowed it. This will only add to the discomfort and against the ease of doing business. It is not that the firm can never be succeeded by a company, but they have to opt a step-in. This is kind of absurd. Literally, the interpretation is definitely correct but I think it's adding to absurdity. And if not then what is the benefit of this modus-operandi?

What is the reason for using the phrase "any such persons"  instead of the word company?

232. (1) Where an application is made to the Tribunal under for the sanctioning of a compromise or an arrangement proposed between a company and any such persons as are mentioned in that section.....

Yes Dear, you are correct in a way, but this is recent judgement of Tribunal !!

Let us wait for any  High court judgement....

Thank you, Sir.

I was not feeling very pragmatic regarding that judgement. When I was studying these provisions for the 1st time, I did interpret that partnership firm will be allowed to get converted.

I doubt that we might get a HC Judgement, as the cost involved in going in the appeal would be much higher than the cost of converting the firm into the co. Plus there is always a risk of losing 

Thank you for endorsing my view.