Court :
CAL
Brief :
Merger of authorized capitals of companies - Increase of
authorized capital of the transferee company - Whether
registration fees to be paid on the increased capital - Held, No.
Citation :
AREVAT & D INDIA LTD. v. UNION OF INDIA
[(2008)
Brief Facts : In a petition seeking amalgamation, the Single Judge
had held that clause 11.7 of the scheme to be deleted and replaced
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in the manner indicated in the said judgment and further provided
that increase of authorized share capital of the transferee-company
would be effective only upon the transferee-company paying
the requisite registration fees as provided in Schedule x to the
Companies Act, 1956 (‘the Act’).Appellants appealed against the
said judgment.
Decision : Appeal allowed.
Reasons : After analyzing all the decisions cited before us, we
come to the conclusion that the submission made by the appellants
has substance. Further, we find no reason to support the order so
passed by the Hon’ble first court with utmost respect to his
lordship in view of the decisions and the law settled by the
different High Courts on that point. Furthermore, we find that
the reasoning given in those decisions cannot raise any question
to express a different view. We, accordingly, allow the appeal
and direct that it is not necessary to pay any fee for giving any
effect to the increase in the authorized share capital of the
transferee-company pursuant to the said scheme and we also
direct that it is not necessary to delete clause 11.7 as directed by
the humble first court and accordingly the scheme is approved
without substituting clause 11.7 thereof.
CAclubindia
