Saravana Synthetics Ltd. passed a resolution for reduction of capital that has been approved by the Tribunal. Being aggrieved on the valuation process employed Mr. Suman, a shareholder, holding about 4% of total capital,
CS Professional · Corporate Restructuring, Valuation and Insolvency · PYQS · December 2019
Saravana Synthetics Ltd. passed a resolution for reduction of capital that has been approved by the Tribunal. Being aggrieved on the valuation process employed Mr. Suman, a shareholder, holding about 4% of total capital, appealed against the said order. Will he be successful ?
Answer & Explanation:
Mr. Suman shall not be successful. Resolution for reduction of capital is approved with requisite majority. Tribunal passed order of approval with proper reasoning. It was held in the matter of Chander Bhan Gandhi v. Reckit Benckiser (India) Ltd. [2012] 107 CLA 511 (Del) that in the absence of any fault in the reasoning of the Single Judge approving the reduction of capital, valuation of shares, the appeal by a sole shareholder is rejected. Merely determination of value of shares by some other method having a different conclusion is not a ground for appeal. [ Wartsila India Ltd v. Janak Mathuradas and other [2010] 99 CLA 463 (Bom) ]
Topics: Capital Reduction
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