Lucky Valley Investments and Holdings Limited vs Nil

Anand Byrareddy, J.—The petition having been advertised in the newspaper, there are no objections or rather respondents present. The petitioner-Company was incorporated on 18.07.1955 under the Companies Act, 1913. The registered office of the petitioner is at Bangalore. Article 67 of the Company''s Articles of Association authorizes the company to reduce its share capital in any way and in particular, by paying off any paid-up share capital which is in excess of the wants of the company.

By a special resolution of the company passed in accordance with Section 189 of the Companies Act, 1956 at an Extra-ordinary General Meeting held on 09.10.2013, it was resolved as follows:

Pursuant to the provisions of Sections 100 to 103 of the Companies Act, 1956 and subject to confirmation by the Hon''ble High Court of Karnataka, the Paid-up Share Capital of the Company be and is hereby reduced from Rs. 55,50,000/- (Rupees Fifty Five Lakhs and Fifty Thousand only) consisting of 555 (Five hundred and fifty five) equity shares of Rs. 10,000/- (Rupees Ten Thousand) each to Rs. 21,40,000/- (Rupees Twenty one Lakhs Forty Thousand only) divided into 214 (Two Hundred and Fourteen) equity shares of Rs. 10,000/- (Rupees Ten Thousand) by paying off/returning to the holders of the 341 (Three Hundred and Forty One) equity shares (except Mr. B.K. Poddar, Mrs. Sushila Poddar, Mr. Abhishek Poddar, Mr. Aman Poddar who are the promoters of the Company), as set out herein below, an aggregate sum of Rs. 34,10,000/- (Rupees Thirty Four Lakhs Ten Thousand only), and thereby extinguishing all such 341 (Three Hundred and Forty One) equity shares.

The above resolution is found to be in order and is duly approved by this Court.

The copy of the notice is produced at Annexure-"D" to the petition and the resolution is at Annexure-"E". The resolution was duly approved by the Board of Directors at their meeting held on 10th September 2013. A certified copy is produced at Annexure-"C" of the petition. This court, by its order dated 29.11.2013 in C.A. 2220/2013, had dispensed with the requirement of settling the list of creditors and had directed the petitioner to carry out an advertisement in an English daily. That has been complied with, and a copy of the paper publication has been produced.

The form of minutes proposed to be registered u/s 103(1)(b) reads as under:

The paid up share capital of the Company is henceforth Rs. 21,40,000/- (Rupees Twenty One Lakhs Forty Thousand only) divided into 214 (Two Hundred and Fourteen) equity shares of Rs. 10,000/- (Rupees Ten Thousand) each fully paid up, reduced from Rs. 55,50,000 (Rupees Fifty Five Lakhs Fifty Thousand only) consisting of 555 (Five Hundred and Fifty five) equity shares of Rs. 10,000/- (Rupees Ten Thousand) each. At the date of registration of this minute the Company shall extinguish 341 (Three hundred and forty one) equity shares forming part of the Paid-up Equity Share capital.

The minutes set forth hereinabove stand approved.

Accordingly, the petition is allowed. The order including the minutes shall be delivered to the Registrar of Companies within twenty one days from the date of receipt of a certified copy of this order. The notice of registration shall be published in the English daily--"The Hindu" Bangalore Edition within fourteen days from the date of registration of the order and minutes by the Registrar of Companies and a copy thereof shall be filed by the petitioner with the Registry.