Case Law Details
Marathon Nextgen Townships Pvt Ltd Vs Regional Director (NCLAT)
Introduction: In the legal landscape of corporate restructuring, the case of Marathon Nextgen Townships Pvt Ltd vs. Regional Director stands as a significant precedent. The National Company Law Appellate Tribunal (NCLAT) clarified the National Company Law Tribunal’s (NCLT) supervisory role when statutory requirements of an amalgamation scheme are satisfied.
Background and Appeal: The case began when the appellants, Marathon Nextgen Townships Pvt Ltd (Appellant No.1) and Marathon Nextgen Realty Ltd (Appellant No.2), challenged an NCLT order dated July 14, 2023. The appellants were aggrieved by the NCLT’s unilateral decision to change the appointed date of their merger scheme from April 1, 2019, to April 1, 2020.
Corporate Restructuring and Initial Application: In 2019, the appellants were undergoing a corporate restructuring. As part of this process, Marathon Nextgen Realty Ltd infused Rs. 126.33 crore into Marathon Nextgen Townships Pvt Ltd through the subscription of unsecured non-convertible debentures. The appointed date for the merger was set as April 1, 2019, considering various accounting, financial, and taxation aspects.
To effectuate the amalgamation, the appellants filed applications with the NCLT, Mumbai Bench, which were admitted on February 6, 2020, and August 24, 2021. Despite several hearings, the matter faced delays. Eventually, the NCLT approved the scheme but changed the appointed date without substantial reasoning, prompting the appeal.
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