Ch. Mohd Sharief Tariq, Member - (1.) Under consideration is an application filed under section 66 of the Companies Act, 2013, seeking confirmation of the reduction of capital proposed by passing a special resolution in EoGM held on 12th July 2017. It was resolved that the issued, subscribed and paid up equity share capital of the Applicant Company be reduced from Rs.41,62,67,090/- consisting of 4,16,26,709 equity shares of Rs.10/- each fully paid up to Rs.6,24,40,064/- consisting of 4,16,26,709 equity shares of Rs.1.50 each, fully paid up by setting off the accumulated losses to the extent of Rs.6.52 per share and by refunding Rs.1.98 per equity share upon 4,16,26,709 equity shares. It was further resolved that consequent upon the sale of factory and rights of lease hold land and subject to the approval of the company in general meeting, approval was accorded to set off the accumulated losses to the extent of Rs.27,14,07,360(i.e Rs.6.52 per share on 4,16,26,709 equity shares) and pay off the paid up share capital which is in excess of the needs of the company to the extent of Rs.8,24,19,667/- (i.e. Rs. 1.98 per share on 4,16,26,709 equity shares) .
(2.) Heard the representative appearing on behalf of the Applicant company and perused record.
(3.) Looking to the pleadings and records placed on file and the relevant provisions of the Companies Act, 2013 along with Rules of the National Company Law Tribunal (Procedure for Reduction of Share Capital of the Company) Rules, 2016, the Applicant has made out a case for the issuance of notice. Therefore, we direct the Registry to issue notice to ROC concerned, Regional Director, MCA. Since the Applicant company is a unlisted private limited company, there is no requirement to issue notice to the SEBI. The Applicant Company is directed to issue individual notices to its creditors as prescribed.;