Olmec Technologies Private Limited Vs.
Registrar Of Companies, (2020) 07 NCLT CK 0066
NCLT allowed the petition filed by the petitioner
U/s 66 & 52 of the Companies Act, 2013, R/w the NCLT (Procedure for
Reduction of Share Capital of the Company) Rules, 2016, and the applicable
provisions of the NCLT Rules, 2016, by inter alia seeking the confirmation of
reduction of capital, as resolved by a Special Resolution on 29th November
2019, etc. While allowing the application NCLT held that it appears that the
Reduction of Capital has been contemplated for repayment of excess capital which
is not required for carrying on the business of the Applicant Company, as it is
proposed to scale down the business. The reduction of paid up share capital
does not involve the diminution of any liability in respect of unpaid share
capital. No prejudice is caused to any of the creditors or other stakeholders with
the proposed reduction as there is no reduction in the amounts payable to them,
no compromise or arrangement is contemplated with the creditors and there is no
reduction in the security, if any. The Company also has sufficient funds even after
the reduction, and hence neither its business operations would be adversely affected,
nor its ability to honour its commitments or to pay its debts in the ordinary
course of its business. Hence it appears that the impugned action will not cause
prejudice to any of the stakeholders, if the Reduction of Capital is approved. On
a perusal of the material brought on record, it appears that the Applicant
fulfils the conditions laid down in Section 66 of the Companies Act, 2013 and
the proposed reduction is conformity with the Accounting Standards specified in
section 133 of the Company's Act 2013.
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