JERSEY INDIA LTD Vs. STATE

JUDGEMENT

(1.) THIS is a unique petition filed by Jersey India Limited (hereinafter called "the company") under Section 79 of the Companies Act, 1956 (hereinafter called "the Act"), praying for sanction for issue of 23,88,000 equity shares of Rs. 10 each at a discount of 16.67 per cent, as authorised by the resolution of the company passed at its annual general meeting held on September 30, 1996.

(2.) The facts in this case are that the company was incorporated in October, 1992, and has a paid-up capital of Rs. 10,60,07,000 as on the date of the petition. The above capital was after a public issue of Rs. 482 lakhs made in 1994, which was over subscribed at that time by 15.94 times. The shares of the company are listed on the recognised stock exchanges at Delhi and Mumbai. There are about 20,378 shareholders in the company with break-up as follows :

(3.) AFTER the receipt of the petition notice was issued to the Registrar of Companies to file a status report with regard to the affairs of the company as well as his comments on the present petition. The report received from the Registrar of Companies confirms some of the facts as narrated in the petition. However, he had called for certain additional information from, the company which also has been submitted by the company. The Additional Registrar of Companies was also, present during the hearing of the petition. Shri U. P. Mathur, advocate, reiterated the contents of the petition, cited a precedent from a decision of the Southern Bench of the Company Law Board in this regard and urged that the prayers be granted.