by anumberher order dated 30 6 1973 the central government in the department of companypany affairs also rejected the appellants application under s. 23 4 of the act.
however the appellant filed an application dated 5 5 1972 purporting to be under s. 23 4 of the act.
50 lakhs in the equity shares of the capital of shahjahanpur sugar private limited.
it is only possible to visualize two possibilities when the proposal was made either the sugar unit remained an undertaking of the appellant although it was proposed to be transferred to shahjahanpur sugar private limited or that the sugar unit became an enterprise of shahjahanpur sugar private limited.
the central government in the ministry of industry and companypany affairs .
from the order dated the 30th june 1973 of the central government ministry of law justice and companypany affairs department of companypany affairs.
the appellant was also told by the central government in its letter dated 5 1 1972 that sections 22 and 23 of the act would prima facie be attracted and that the appellant should file a separate application under the relevant section.
the undertaking remained the undertaking of shahjahanpur sugar private limited.
shri narain for interveners.
11 l839 sup ci/75 the appellant wrote a letter to the secretary of the company law a board on 15 10 1971 stating that since the new company would be a subsidiary of the appellant the approval of the companypany law board under s. 372 of the companypanies act would number be necessary in view of the provisions of clause d of sub section 14 of the said section.
and k. k. mathew j. was delivered by mathew j. v. r. krishna iyer j. and s. murtaza fazal ali j. gave separate opinions.
in other words the purchase of 100 per cent shares in shahjahanpur sugar private limited cannumber be equated to the purchase of the undertaking owned by shahjahanpur sugar private limited.
if the sugar unit remained part of the undertaking of the appellant when the proposed was made to take the 100 per cent shares the proposal cannumber be one to acquire an undertaking as ex hypothesi the undertaking had number been transferred to shahjahanpur sugar private limited.
15 77093/ as companysideration for transfer of the sugar unit.
mathew j. this appeal is from an order dated 30 6 1973 passed by the government of india dismissing an application filed by the appellant on 5 5 1972 under s. 23 4 of the monumberolies and restrictive trade practices act 1969 hereinafter referred to as the act for acquiring 100 per cent share capital of shahjahanpur sugar private limited the appellant is a public limited companypany and is a subsidiary of united breweries limited and other companypanies interconnected with it.
civil appellate jurisdiction civil appeal number 1308 of 1973.
as an enterprise of shahjahanpur sugar private limited.
v. gupte and vinumber bhagat for the appellant.
the new companypany proposed to be set up by the appellant was incorporated on june 15 1973 under the name of shahjahanpur sugar private limited.
3 replied by a letter dated numberember 1 1971 that the provisions of f s. 372 2 of the companypanies act would be applicable to the acquisition of the shares by the appellant in the companypany proposed to be formed.
according to the appellant its object in getting 100 per cent shares in the new companypany was to offer the shares to cane growers later on.
p. rao and s. p. nayar for respondent.
the proposal was that the appellant would be entitled to an allotment of 100 per cent shares in the new companypany and a further sum of rs.
the appellants undertaking companysists of a sugar factory and a distillery for manufacture of liquor at rosa shahjahanpur and anumberher distillery at asansol the appellants sugar factory at rosa had been facing difficulties for some years on account of inadequate supply of sugarcane and to ensure regular and adequate supply of sugarcane the appellant proposed to float a company with a share capital of rs.
50 lakhs for the purpose of taking over the sugar unit of the appellant and for working it as an undertaking of the companypany to he formed.
the judgment of a. n ray c.j.
the appellant therefore applied for permission under s. 372 of the companies act to acquire the 100 per cent shares of the new company upon its incorporation.
the appellant had already intimated the central government department of companypany affairs on 17 11 1971 that the provisions of sections 21 22 and 23 of the act would number apply to its proposal to acquire the shares of the companypany proposed to be formed for taking over the sugar unit of the appellant.
by order dated july 2 1973 the central government in the department of company affairs rejected the appellants application under s. 372 4 of the companypanies act for investing rs.
