+91 7738 0716 11
+91 7738 0716 11
Recovery Procedure in Cheque Bounce Cases
by: Adv. Kishan Dutt Kalaskar 2021-08-05 08:29:16
by: Adv. Kishan Dutt Kalaskar 2021-08-05 08:29:16
by: Adv. Kishan Dutt Kalaskar 2021-07-26 11:08:00
by: Adv. Latha Anand 2021-07-20 13:54:02
by: Adv. Kishan Dutt Kalaskar 2021-07-05 12:35:50
by: Admin 2021-06-30 07:33:33
by: Adv. Latha Anand 2021-06-21 13:17:46
Recovery Procedure in Cheque Bounce Cases
Roxann Sharma V/s Arun Sharma
Ganesh Santa Ram Sirur V/s State Bank of India &Anr.
Recovery Procedure of Consumer Court Cases
Bank Guarantee
M/s M.M.T.C Ltd. & Anr v/s M/s Medchl Chemical & Pharma P
Shailendra Swarup V/s Enforcement Directorate, The Deputy
SunitaTokas v/s New India Insurance Ltd.
Can couples get separated without a divorce?
Scope of Arbitration in India
Appointment of Arbitrators
NRIs right to purchase Property in India
Decriminalization of Dishonour of Cheques: a measure contradictory to its purpose
Paternity leave in India
Regulation of Cryptocurrency in India
How can litigants list their cases online?
Validity of Narco-Analysis in India
Remedies against frivolous cases registered against students by the Police
Procedures involved in a Criminal Trial
Procedured Involved in a Family Court Case
Death Certificate of a missing Person
Accountability of Police
Highlight of important Dishonour of Cheque case laws in 2020
Guidelines to be followed by Registered Medical Practitioners to dispense medicines
Land Mark Judgements on Family Law for the Year 2020
Remedies against harassment by Recovery Agents
Abetment to Suicide
Overview of the Vehicle Scrappage Policy
Rights of husbands in dowry and cruelty-based complaints
Admissibility of E-evidence; Are WhatsApp chats and E-mails admissible in Court?
Triloki Nath Singh V/s Anirudh Singh
Milmet Oftho & Ors. V/s Allergan Inc.
Director of Income Tax II (International Taxation) V/s M/s Samsung Heavy Industries Co. Ltd.
M/s ExL Careers V/s Frankfinn Aviation Services Pvt. Ltd.
The Maharashtra State Cooperative Bank Ltd V/s Babulal Lade & Ors.
Constitutionality of Bandhs
State of Himachal Pradesh V/s A parent of a student of a Medical College & Ors.
Rathnamma & Ors. V/s Sujathamma & Ors.
Ravinder Kaur Grewal V/s Manjit Kaur
Ficus Pax Pvt. Ltd. V/s Union of Indian & Ors.
Commissioner of Income Tax V/s Chandra Sekhar
Analysis of Section 41-A of CRPC, 1973
Judgment: Indian Bank V/s Abs Marine Product Pvt. Ltd.
Kailas & Ors. V/s State of Maharashtra
Sukhedu Das Vs Rita Mukherjee
Witness to a Will
National Insurance Co. Ltd V/s Hindustan Safety Glass Works
Mahalakshmi V/s Bala Venkatram (d) through LR & Anr.
Kajal V/s Jagdish Chand
Shyamal Kumar V/s Sushil Kumar Agarwal
NRI's Power of Attorney
Megha Khandelwal V/s Rajat Khandelwal and Ors.
Is Registration Compulsory under Trademark and Copyright?
Md. Eqbal & Anrs. V/s State of Jharkhand
Types of Will
Employment Contract
Police Clearance Certificate
Validity of Crypto-Currency in India
A. Jayachandra V/s Aneelkaur
Points to be considered before filing an Income Tax Return
Union of India V/s N. K. Shrivasta
Startup under the Government Programme
The procedure for filing a complaint against a Lawyer
Types of Stamp Paper
Satvinder Singh V/s State of Bihar
Sexual Violence laws under the Indian Penal Code
Shreya Singhal V/s Union of India
Division of Assets
Shaleen Kabra V/s Shiwani Kabra
Types of Property
Vasant Kumar V/s Vijaykumari
Personal Injury - Damages
Adultery under the Indian Law
United Commercial Bank & Anr. V/s Deepak Debbarma & others
Intentional Wrongs
Vinay Kumar Mittal & Others V/s Deewan Housing Financial Corporation Limited
How to get a Marriage Certificate?
Mohammed Siddique Vs National Insurance Company Ltd
Pagdi System
The Bonus Act
Frivolous Complaints under the Sexual Harassment Act
Important Income Tax Return Forms and its Due Dates
Garden Leave
How can a Private Complaint be filed?
Key changes to Indian Tax Regulations
Employees Provident Fund
Status of Triple Talaq
Contract Farming & the new ordinances that affect the Farmers
Documents required for filing a Divorce
Section 138, 141 and 142 of the Negotiable Instrument Act 1881
Validity and Enforceability of Click-wrap Agreements
Child Custody under Christian and Parsi Law
Hindu Succession Act
Oppression and Mismanagement
Fraudulent and Invalid Contracts
Developments in Reserve Bank of India
Loan Frauds in India
Penalties associated with Driving
Laws governing a Knife
Medical Negligence and its Compensation
Interim Maintenance under the Domestic Violence Act
Shortcomings of the Consumer Protection Act, 2019
Tougher rules for the E-Commerce Industry
Difficulties faced by men in Family Courts
The consumer is the King in 2020
Illegal Termination of an Employee during Covid-19.
Child Labour Laws in times of Covid-19
Real Estate scenario Post Covid-19
Post Covid-19 Digital Shift of Legal practise
Mutual Consent Divorce through Video Conferencing
59 Chinese Apps banned in India
Litigants and the Lockdown - A Court Perspective
Anticipatory Bail for cases under section 498A of IPC
Brand Protection in times of Covid-19
Title Verification of Immovable Property
The Judiciary during the Pandemic
Termination of an Employee during Covid-19
Drafting of a Will
Criminal Medical Negligence in times of Covid-19
How does Covid-19 affect employers and employees?
Rent deference during the Pandemic
Post Covid-19 digital shift of legal practise
Police Interrogation
Prenuptial Agreements
Void and Voidable Contracts
The Negotiable Instrument Act 1881
Cheque Bounce Notice
Types of Dishonour of Cheques
Intestate Succession
The Stand of Essential Commodities
Trademark Cease and Desist Notice
IT Department Notice
Eviction of a Tenant
Consumer Complaint Legal Notice
Medical Adherence to Environmental Laws
Basic Elements of Transfer of Property Act, 1882
Debt Recovery Notice
Cheque Bounce Notice
Hygiene maintenance in Hospitals and Clinics
Consequences of using a Fake Degree/Certificate
Healthcare Security
Rights of Doctors with respect to Medical Negligence
Importance of Consent
Faulty Machine Aids Medical Negligence
The Special Marriage Act, 1954
Top 2019 judgements by Supreme Court
National Medical Commission Act 2019
Money Laundering
Hindu Undivided Family (HUF)
Child Labour
Endorsement under Negotiable Instrument Act
Quashing of an FIR
Annulment of Marriage
Probate
FAQ's on Trademark
EMI - Equated Monthly Installments
Legal mistakes made by the Start-Up
What is a Stamp Paper?
Sexual Abuse in Shelter Homes
Debt Recovery provisions under the SARFAESI Act
Effective ways to stop Ragging
Transfer of Property Act
Personal Injury Lawyers
Marriage Registration under the Special Marriage Act
Rights of Tenant
Classification of various Collar Jobs
Documents to be submitted for ITR Filing
Illegal Immigrants
Role of lawyers in Corporate Finance
Intestate Succession
Employment of White Collar Employment of White Collar
Domestic Violence
Power of Attorney
Dissolution of Marriage - Christian
Noting And Protest
Hostile Witness
Unfair Trade Practice
All you need to know: Drafting a Legal Notice
Fraudulent and unauthorized transactions at ATM
Is legal documentation important in medical practice?
Why do doctors need to be updated with medical negligence laws?
Personal Data Protection Bill, 2019
Jurisdiction of Consumer Redressal Forums
Does telephonic consultations amount to culpable negligence?
Consumer dispute Redressal Forum in dealing with Medical Negligence
Validity of Notices.
Response to a Legal Notice
Promotion of Medical Products.
Doctors' Bill: Prohibition of Violence & Damage to Property Bill, 2019.
Why less Indemnity cover is risky for Doctors?
Procedure for filing a Notice in India
Format of Legal Notices in India
Citizenship Amendment Act, 2019
Demerger
Legal framework for the Elimination of violence against Women in India
International Day for the Elimination of violence against Women
Family Courts in India
Inheritance Law in India
Rights of Children in India
Virtual Clinic
New Medical Technologies in India
Land Records & Titles
Regulations for firecrackers during Diwali
Legal and Regulatory Regime: Medical Technology
Intellectual Property in Medicine
Consumer Protection Bill, 2019
Artificial Intelligence in healthcare
The Real Estate (Regulation & Development) Act
Warrant and its Types
Joint Custody of Child in India
Limited Liability Partnership (LLP)
Penal Provision on Rash and Negligent Driving
National Company Law Tribunal
Rules to be followed by the Ganpati Mandals
Need to amend CrPC and IPC to increase the conviction rate.
Motor Vehicle Amendment Act, 2019
The Growth of technology Patents in India
Citizenship under the Indian Constitution
Basic Structure of the Indian Constitution
A comparative study of the Indian, UK and the US Constitution
Can the Indian Constitution be Amended?
Overview of the Indian Constitution
All you need to know: Drafting a Legal Notice
Surrogacy (Regulation) Bill, 2019
Overview of The Indian Penal Code
Offences and Prosecution under the Income Tax Act, 1961
The abolishment of Article 370 of the Constitution: One Nation One Flag
Intervention of SC in the Unnao Rape Case
Case of abandoned NRI brides, Supreme Court issues notice to the State
Financial Risk Management
Know more about Equal Remuneration Act, 1976
Procedure to File Complain against Domestic Violence
The IndiGo Promotors Feud
Rajya Sabha passes the Triple Talaq Bill
Gift Deed
More about Contested Divorce
Things to be kept in mind - Dishonor of Cheque
Prison Reforms in India
Consumer Protection ACT, 1986
More about Joint Venture
Delay of Condonation
Points to be Noted for Child Custody to Father
Basic information of Companies
Plastic Money and their Advantage & Disadvantages
Motor Accident Claim Tribunal
Guidelines to protect doctors from frivolous and unjust prosecution
Unjust Compensation - A Doctors Perspective
Misdiagnosis: A Medical Negligence?
Exemption of doctors operating in Emergency Rooms
General Types of Medico-Legal Cases (MLC)
Duty of patient to avoid aiding Medical Negligence
Rights of the Patient
Steps to be taken to avoid Medical Negligence
Liability of Medical Negligence under Consumer Protection Act
Laws that affect Medical Professionals in India
Defense against Medical Negligence Cases
Duties of Doctors
Common types of Medical Negligence
Medical Consent for treatment in India
Regulation for E - Pharmacy in India
Types of Consent for Medical Treatment
Guidelines for Autopsy/ Postmortem in India
Guidelines for the prescription of medicines
Procedure to start a Pharmacy Store in India
India Vs Pakistan: Kulbhushan Jadhav's Case
Contempt of Court
Juvenile Justice Act, 2000
Bankruptcy & Insolvency in India
The Maternity Benefit Act, 1961
Guardian and Ward Act In India
Medical Negligence in India
Procedure to be followed in Civil Recovery Proceedings
Rights of Consumers
Mandatory Registration of Documents and procedure
Rafale Deal And All About The Controversy
By: Adv. Jayatinn B Laalwani
Date:12 December 2019
Commmercial Contracts
Comments:0
Views:894
Likes:0A demerger is a process to separate one or more units and to form a new company. A demerger is a corporate reorganization in the case when a business breaks down, either to function on their own or to liquidate or to be sold. The term ‘demerger’ is not defined under the Companies Act, 2013. However, the explanation to section 230 (1) of the Companies Act, 2013, prescribes arrangement as including a reorganization of the company’s shares capital by the consolidation of shares of different classes or by the division of shares of different levels or by both of these methods.
A demerger under the National Company Law Tribunal (Tribunal) process involves detailed steps with their associated timelines. A demerger is complete only after the Tribunal sanctions the draft scheme, and such order is filed with the registrar of companies. In the case of listed companies, specific additional steps such as intimation to stock exchange are required to be undertaken.
Types
Partial Demerger
Partial demerger results when a part of a company is separated and transferred to a new company formed with the same shareholders allotted shares in the new company in the same proportion as held by them in the demerged company.
Demerger under a scheme of arrangement with approval by the Court
In order to affect a demerger, there must be a provision for demerger in the Memorandum of understanding of the company. The scheme of such an arrangement has to be submitted in the High Court where the head office of the principle, as well as the resulting company, is registered.
Demerger by agreement between promoters
This is a demerger that takes place by agreement between promoters. In such a demerger, the principle company may spin off its specific undertakings to the resulting new company. All the property, liabilities and issues of the principle company, transferred to this resulting company immediately before the demerger becomes the issues of the resulting company.
Demerger Under Scheme Of Arrangement
On the basis of the powers a company has in its Memorandum, it can carry out division or split of its entity in the same manner as it could accomplish amalgamation through a scheme of arrangement under the provisions of the Companies Act.
Demerger Under Voluntary Winding Up
The original company which has split into several companies after division could be wound up voluntarily pursuant to the provisions of the Companies Act.
Spin-Off & Split-Off
Spin-off: In the case of the spin-off, this is a kind of dispossession strategy where the company is separated from the parent company, or it gets divided from its firm. When the companies get a spin-off, the parent company and the distribution company act separately as a corporate entity. It can be regarded as the formation of an independent company through the distribution of new shares which are existing or can be divided from the parent company.
The primary purpose of this type of divestiture is to attract the investments from outside, as after the process of demerger the business unit gets separated. It is presumed that after the spin-off the companies, they will play a meaningful role.
Split up: In this type, when a company splits into a different and independent company, the parent company ceases to exist. When the company splits into separate entities, the shares held by the parent company are exchanged for the shares in the formation of a new company. The shares are distributed depending on the situation as the parent company owns them.
The purpose of adopting this strategy is if the government mandates to curb the monopoly practices of the company, which has a various business line and the management of the company is unable to control them. The business entity can separate to focus on the core business activity.
Process For Demerger
The following are the significant steps involved in the process of the demerger of a company:
Preparation of the Scheme of Arrangement
In the process of demerger, the essential document is the scheme of arrangement in which the company binds all stakeholders. A scheme of arrangement deals with aspects such as transfer of debts, transfer of employees, the assets and liabilities of the company, the share swap ratio if applicable and many more. This scheme of arrangement is usually proposed by the directors or the liquidator of the company. It is necessary that the scheme of arrangement shall be accepted by all related stakeholders, shareholders, creditors and the employees.
Application in Court
An application should be made to the high court in order to complete the process of a demerger. Moreover, to commence the process of demerger, an application must be filed under form 33 along with the affidavit of promoters. Also, the following documents are mandatory:
Obtaining a court’s order for holding a meeting of Members or Creditors
The court examines the fairness of the scheme submitted and subsequently issues a summons. The court has to ensure that the scheme is capable of being implemented.
Issuance of Notice
The authorized individuals must issue a notice twenty-one days prior to the date of the meeting along with the proposed arrangement scheme and proxy forms to the interested parties. This notice would be published in the newspaper that is well circulated through Form 38 to the parties who are interested.
Meetings
A meeting should be conducted as per the guidelines by the court, and the results of the meetings should be recorded. The votes in support or against the motion should also be mentioned in the report. The report in form 39 must be submitted by the chairperson of the meeting within the appropriate time approved by the Court of law.
Petition and Sanction of the Court
A petition has to be submitted to the court for authorizing the demerger. It has to be sanctioned by three-fourth of members/creditors to file an appeal. Once the Court hears the objections, it verifies the applicability of the scheme submitted and later issues an order. The Court would then pass an order approving the demerger in the same newspaper in which the notice of the meeting was advertised.
Examples Of Demerger
Judgement
Aditya Birla Telecom Limited vs DCIT
Facts
The taxpayer in the above case is a fully owned subsidiary of Idea Cellular Limited. As per the demerger scheme, all the assets and liabilities of the taxpayer, in this case, were transferred to Idea Cellular Limited without taking anything into consideration before transferring the assets. When the taxpayers evaluated the investments in Indus, and the difference after the evaluation was complete had arisen, the same was transferred to the business restructuring reserve.
The assessing officer held that the demerger was not a good step which was taken under section 50(b) of the income tax act 1961 and that it was just calculated for a short period of capital gain and that the evaluation in the Indus was bound to happen as the part of a full consideration in relation to this case. The taxpayer argued that in case the sale consideration did not exist and that the timely profits can be gained from the value of products so that the seller can tax such a transfer.
The assessing officer then held that no demerger shall arise according to the act and that the taxpayer shall not be eligible for an exemption from paying tax which may arise out of the capital gains under section 47 of the income tax act 1961.
Held
Under the scheme, the taxpayer had transferred all the assets and liabilities without looking into consideration, and the same was approved without any changes or amendments by the Gujarat and the Bombay high court. The tribunal has laid down that in the above case the decision was not fair and the matter was not looked into properly and that consideration in the above case does not fall within a particular provision of the act. Hence, there are no capital gains on transfer under the scheme of demerger, in the absence of consideration.
Conclusion
A demerger is a step taken by companies to boost the value of shareholders in the long run, but the demerged company must fulfil the objective and should maintain a clear perspective of the business to operate separately. The aim of the demerger should be apparent, and the implementation should be conducted by keeping in mind the benefits of all the stakeholders. The concept of the demerger is proved to be a great success in many companies when implemented with extensive planning.
Comment
Share