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CS Professional · Corporate Restructuring, Valuation and Insolvency · Regulatory Approvals of Scheme

Narmada Pharma Ltd's scheme was sanctioned by the Tribunal before the Companies Act, 2013 commenced, under the earlier law. The scheme is now failing to be implemented. Which view is correct?

Section 231 applies, so far as may be, even to a company whose compromise or arrangement was sanctioned by an order made before the 2013 Act commenced. So the Tribunal's supervisory and directive powers extend to such older schemes too.

  1. ASection 231 cannot apply because the order predates the 2013 Act
  2. BSection 231 applies only if the company re-files the scheme under section 230
  3. CSection 231 provisions apply, so far as may be, also to a company for which such an earlier order sanctioning a compromise or arrangement was madeCorrect
  4. DOnly the High Court that sanctioned it can ever deal with it, and the Tribunal has no power

Explanation

Section 231(3) states that the section applies, so far as may be, also to a company in respect of which an order sanctioning a compromise or arrangement was made before commencement of the Act. Option A ignores this.

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