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IN THE NATIONAL COMPANY LAW TRIBUNAL
COURT No. V, MUMBAI BENCH
CP NO.1251/MB/2020
In the matter of Section 66 of the
Companies Act 2013 and the Rules
framed thereunder
AND
In the matter of Reduction of Share
Capital of Akay Investment and
Trading Company Private Limited
Akay Investment and Trading Company
Private Limited,
a Company incorporated under the provisions
of the Companies Act, 1956, having its
registered office A/205, 2nd, Floor, Gokul
Arcade, Near Garware, Vile Parle (East),
Mumbai-
400057,
CIN:
U74110MH1985PTC038276
….. Petitioner Company
Order Delivered On: 02.02.2022.
Coram:
Smt. Suchitra Kanuparthi, Hon’ble Member (Judicial)
Smt. Anuradha Sanjay Bhatia, Hon’ble Member (Technical)
IN THE NATIONAL COMPANY LAW TRIBUNAL
COURT No. V, MUMBAI BENCH
CP NO.1251/MB/2020
2 | P a g e
Appearances (via video conferencing): -
For the Petitioner Company: CS Ashish O. Lalpuria i/b Akkad Mehta & Co
LLP
For the Regional Director (WR): Ms. Rupa Sutar, Deputy Director
Per: Anuradha Sanjay Bhatia, Member (Technical)
ORDER
1. Heard the learned Authorised Representative for the Petitioner
Company. No objector has come before the Tribunal to oppose the
Petition nor has any party contravened any averments made in the
Petition.
2. The learned Authorised Representative for the Petitioner submits that
Article 13 of its Articles of Association of the Petitioner Company
empowers the Petitioner Company to reduce its share capital in any
manner for the time being authorized by law.
3. RATIONALE/JUSTIFICATION FOR PROPOSED REDUCTION
OF SHARE CAPITAL:
a. The company does not envisage any new business in share trading
or any lucrative opportunity with regards consultancy in realty
projects in near future and even thereafter. Hence, it is proposed to
return an amount of Rs. 94/- out of the Member’s fund by way of
reduction of nominal value of the paid-up capital of the Company
from Rs. 100/- to Rs. 6/- each. This being the Capital in excess of
IN THE NATIONAL COMPANY LAW TRIBUNAL
COURT No. V, MUMBAI BENCH
CP NO.1251/MB/2020
3 | P a g e
the requirements of the Company and is now proposed to be
returned back to the Members.
b. The Board of Directors of the Company, in accordance with the
provision of Section 66 of the Companies Act, 2013, and other
applicable provisions, if any, of the Companies Act, 2013 read
with the applicable rules therein, and subject to the consent of the
shareholders and the approval from the NCLT and other statutory
authorities as and where applicable, proposes to reduce paid –up
share capital which is in excess of requirements of the Company.
c. Furthermore Article no. 13 of the Articles of Association of the
Company authorizes the Company to reduce its share capital in any
manner and in accordance with the provision of the Companies
Act,2013.
d. The Board of Directors believe that in order to present fair financial
position of the Company and after an analysis of the various options
available to the Company, the Board of Directors felt that it would
be prudent to reduce the Nominal Value of the Equity Share Capital
of the Company which is the most practical and economically
efficient option available to the Company in the present scenario.
4. The learned Authorised Representative for the Petitioner Company
submits that this petition is for confirmation of a special resolution
IN THE NATIONAL COMPANY LAW TRIBUNAL
COURT No. V, MUMBAI BENCH
CP NO.1251/MB/2020
4 | P a g e
passed by the Petitioner Company for reduction of its equity share
capital by reducing the paid-up equity share capital from Rs. 17,00,000
divided into 17,000 Equity Shares of Rs. 100/- each, to fully paid up
equity share capital of Rs. 1,02,000/- divided into 17,000 Equity Shares
of Rs. 6/- each, fully paid up. Hence, it is proposed to return an
amount of Rs. 94/- out of the Member’s fund by way of reduction of
