Yatindra Singh, Ran Vijai Singh., JJ. - (1.) The main question involved in these writ petitions is, 'whether any stamp duty can be charged under. Article 23 of Schedule 1-B of the Indian Stamp Act (see Appendix-1) as applicable in our State (the U.P. Stamp Act) on the scheme of arrangement sanctioned by the court, which may be demerger of a going concern with another company or amalgamation/merger of one company with another company.
(2.) The Indian Stamp Act has been amended by the different States. In order to distinguish the Acts as applicable in different States, I am prefixing the name of that State while referring to the Act as applicable in the State. THE FACTS WP 41811 of 2006 (Hero Motors case)
(3.) M/s Majestic Auto Limited (transferor company) is a public limited company, It has two units : one at Ghaziabad and another at Ludhiana. The unit at Ludhiana is manufacturing moped up to 72 cc. The unit at Ghaziabad is manufacturing moped beyond 72 cc. M/s Hero Motors Limited (the transferee company) is another public limited company manufacturing mopeds and scooters. The Board of Directors of these two companies proposed a scheme of arrangement by which Ghaziabad unit of the transferor company was to be de-merged and merged with the transferee company. This proposed scheme was sanctioned by the Punjab and Haryana High Court on 29.5.2004. It was also sanctioned by the Delhi High Court on 22.7.2004. It appears that there was some mistake in the order of the Delhi High Court and it was corrected on 30.7.2004.;