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CS Executive · Company Law and Practice · Compromise, Arrangement and Amalgamations - Concepts

Narmada Pharma Ltd's sanctioned arrangement needs a small change in the timetable for share allotment. At the time of sanction the Tribunal did not address it. What can the Tribunal do under section 231?

The Tribunal may give directions or make modifications at any time after sanction, not only in the sanction order, provided it considers them necessary for proper implementation of the compromise or arrangement. Winding up is not needed for such a minor issue.

  1. ANothing, as directions can only be given in the sanction order itself
  2. BGive directions or make modifications at any time after the order, if necessary for proper implementationCorrect
  3. CDirect winding up immediately
  4. DRefer the matter to the Registrar for a fresh sanction

Explanation

Section 231(1)(b) allows directions or modifications at the time of the order or at any time thereafter, if necessary for proper implementation. Immediate winding up is wrong because it requires the conditions in section 231(2).

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