( 1 ) BOTH these Company Petitions are filed under Section 391 read with Section 394 of the Companies Act 1956 for obtaining sanction of the Court to a Scheme of Amalgamation of Gujarat Nylons Ltd. Surat (hereinafter referred to as GNL) with Gujarat State Fertilizers Company Limited Baroda (hereinafter referred to as GSFC and for other consequential directions.

( 2 ) APPLYING well established principles of law discussed hereinabove and taking into account the facts and circumstances of the case the Company petitions are required to be allowed by the petitioners. However an objection is raised on behalf of the Gujarat Nylons Employees Union (Union of the Transferor Company) Affidavit-in-reply is filed by Shri H. B. Vasia Secretary of the Union of the Transferor Company opposing the amalgamation of the Transferer Company with the Transferee Company and in particular objection was raised against clause 12 of the Amalgamation Scheme which reads as under: (13) On the scheme being effective all employees of the transferer Company shall be deemed to have become employees of the transferee Company with effect from appointed date without breaking their services and they sha