In re Panama Wind Energy Godawari Private Limited (NCLT Mumbai)
The National Company Law Tribunal (NCLT), Mumbai Bench, allowed the petition filed by Panama Wind Energy Godawari Private Limited under Section 66 of the Companies Act, 2013 seeking confirmation of reduction of its preference share capital. The company proposed cancellation and extinguishment of its entire issued, subscribed and paid-up preference share capital comprising 6,99,99,502 8% Cumulative Non-Convertible Preference Shares held by its sole preference shareholder by utilizing the funds available with the company. The reduction was proposed at a consideration of ₹9.43 per preference share based on a valuation report, with the accounting difference between the face value and the cash payment to be adjusted against the company’s Profit and Loss Account.
The proposal had been unanimously approved by the equity shareholders and the sole preference shareholder through special resolutions. The company informed the Tribunal that notices had been served upon all creditors, the secured creditor had furnished a no-objection certificate, and the proposed reduction would not affect creditors as there was no compromise or arrangement with them and their dues would continue to be paid in the ordinary course of business. The statutory auditors also certified the accounting treatment and confirmed that the company had not accepted any deposits.
