Karnataka High Court
Sun Microsystems India Private Limited vs Nil on 16 June, 2011
Author: B.Manohar
Bench: B.Manohar
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{:Ciu}"I/361 for the Pet£€i0:1§:f_ ha$'"..abQ§%E3»_
Petition under Section 391 to
1956, praying for the .I"bf3aSO 1'1AS ".Staf€§fi,,.1{f1€i'€i'ifl U;1.i£}
H0n'b1e Court may be
of Amalgamatien of Private
Limitéd the Pet:t10£::s3.f;"Ifr:%%n:§:fe'fL§:'§t;~rr}par:y with Oracle
India Private L:imitr:::d,'7- Company and
declare "-__Sa1:%fiۤ an the
Petiti0ne§,'T3j;1f§éffiftrt;-§f:_{:bmpIa1{y,. j:_h€ir shareholders. and
all conCe:1*n§:i;-1.V€;{§t1%§-- Aéfipril 1, 2010 the effective
datejégvfiefF':h.¢.v'f:SCf§fé'I1%V§' iifilalgamation without any
furth é1f d.éé'«§ find ei:c.,
'V'l7h1s'4.vP€%t'§ti:C'§n ;}0r;11ng on for Orders this day, the
.' V.
O R D E R
'E*fiEAV1.isE)etiti0n is filed under Sections 391 to 394 of Act sefiking for appraval cf Scheme sf 'A';§'19f1é1ga1nati0n of Transferorfiompany 116. Sun M M1'.<:r0sys%:ems India Private Limited with Oracle India Private Limitefi (Transferea Company}, i€//:'/_,;% -'/}'-'// '/////////////;.-.-.-.-.'. . em)
2. The petiti0rier-'l'ransferer Cornpanjgf _"« eras iricerporatecl on 261-~3»-- l998 in the name Microsystems India Private Lir_rii.:e_cl, l-3ariga,l_e.re'~ iiriciver"
the provisions of Companies Acfil 9538; iv
3. The registered effiee petitieher.e,CQrnpany is situated at 601 Floor," Langford Road, Banga10rew25i.._ ' =
4. Thevebjierats allthe=x.pefifi0Ii§er~Company are as set out iri thelVie.1-nQ_randrirn__'cf Association briefly stated as under:'' " _ _ , _ "Thai. the Petiiéiener/Transferor Company is engaged in theV.bii_siness of and relating to computer V' saftware, hardware such as, to purchase, sell, import e;r;per:.,Va«ea generally in computers, is engage in all seffiware. {related activities such as software develeijifrient, pregramrriirig, design, development ete., 2 fame is engage in consulting services, system '.i_r1'iegratier1, research, training, acting as value added .. eresellers and COI"I1p11l:€l"*l'€L':'L*£€d support: serviee, Sources of Funds Particulars Amensiit {Reg}, Paid up Share Capital 2 1',200g3'Qo I Reserves & Surplus Loan Funds 8e7;'O..1v7..s§r_§€3 Total 0.13.262 Application of Funds _ Particulars . Ainount (Rs.) Fixed Assets including' . _V 334,649,914 Advances : I -_ .
Deferred Ta2?:_._{_&s3-s.e;7ts" .j 161,688,087 Net Current :i1_sfsetS" ' 2,51 1,075,261 3,007,413,262 eeee
7. _ T "eé11anee sheet and profit and loss as of 31, 2010 of the petitioner-company . has b_ee:1 'Qduced as Annexure-C-1.
8. Board of Directors of the pe':iti0ner--C0mpaI1y Trensferee Company.
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0 *ha._$ avpfirexred and adopted a Scheme of Amalgamation "$431 August 2010 by virtue of which, the pef:iti0r1er~ 0 2 '"e<:-mpany is propesed to be amaigamateci with the software aieng with designing and marketing e'i'eetfie~:jie data processing equipment, products amii-ted"
coristiltaney, advisory marketing arid"'"'e'du'eatioi*iiai°' services relating to data preeessi.1f1g:etc;'
12. The authorised share__.__eapita1 of "the Tiansferee Company as on 3is:._'4:Auguss:t' Rs.i.0O Crore divided into Rs.10,QG;£iQO of Rs.10/~ each. Isstie, ::1iisiibserii:}ed arid' 'upaid up capital of Transferee':C{in?iparij,"' ..V'o'fi 151 August 2010 is Rs.97:.%V51,v«:i8'Cf/.fninety seven lakhs fifty one thousand 'arid and eighty only) divided intq 9,, 75, iii8:'eqti'ityA"'siiares of Rs. 10/ ~ each, of the Transferee Company has been pfeiaared audited for the year ended 31%'? March 2009"a,i_id the said audited accounts is as under: 9
an 231?' August 2010 by virtue of which, the Tfa' Company is proposed to be amalgamateil Oracle India Private Limited/Transferee
16. The circumstances that neeeesit.at'ed"fthe'V said"
Scheme of Amalgamation arVe___ae_f0llews.:' '\
(a) The proposed' at"r;alglarr:j_athiei1Lev».t .§jo1_;ld enhance the size, scale, andAVin:tegra_tiC:;bn'bfhltifijetations, thereby resulting' ' ~an:=__an:a:l'garh:ated V_.eV1};tlty with financial superior to that of the _ 'VPetiti9_r;_e1<./Tifarisfeiferl company and the ransfei:ee.V_ Comyany. as single entities, and the ability to.Vlevlerage_"ar1" enhanced asset base, and a _ divefee V1'8f1§§€A'Qf 'products and services in order to V. A_ efihaneeh Stakeholder value.
(by.
l'1elVptfl0p0sed amalgamation will make available to ».4a:;ialgamated Company the benefit of the lfihafijeilal resources, managerial, technical and rhaflieting expertise of the Petitioner/Transferor Cempany and the Transferee Company. It is envisaged that the combined resources of the amalgamated eempariy will enhance its eapability XJVVV TE I submit that this ojjfiee has been--cvorr:m::rIieaiea"». it by the Regional Director oide dated 22.4.2012 a Copy of eneZoseci'~ affidavit as Anaexure "A Vthaeon eficamiaiag 'ihe"'sieheme"
of amalgamation carefully .refevren.ee" «to_ the material papers rrtacle atraifaiéie to .Ah.imi"'«.and iipori such examination, it was any objection against the _.seiier1me and to leave the matter to, the:je'vvHori't)le High Court on merits."
186 F*..1rther,-- Liquidator also filed his report on 23~5~x20i11 Vetrfxcflstated that on verification of the boot;sVo'f accoirntgépaper, statutory registers and other i of the Company, the affairs of the Cterrzpéiriy-..__"r;gi'Ve not been Conducted in a manner pre;§ud:i_'eia}:"' to the interests of the members of the Comeerty or public interest as per the second proviso to s'i1.b_;E3eetion{1) of Section 394 of the Companies Act, 1956.
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19. The Chartered Accountant... in V' 5-3201} reported thai the Transferoifj» Con1pany5<:io no'; appears to have COI1€i1UC'C€C3»iVi}'Ti.€ afiaifs of a manner prejudicial to :of'V':me.jI1bers or public. Further, noi:e"inf Hiiolders or creditors havep._madeA.._any. to the paper in The Hindu' English Versiiolii as 'as 7}Udaya Vani' Kannada
20. Puifsaiiiantxiioivtheaainalgamation of two Companies, a1I.«;ifinvei'a_sseie" a,n§i___i«iiabi1ities including Income Tax and » a1i_vo€nerp;:§iaiutory liabilities of the petitioner~Company and Vest with the Transferee Company,' the employees of the petitionerfiompany 6 N36 gho are in sewipethasjolg effegtive date shall bficggng ' ie employees 0 ompany on sue "'.Wiihoui; any break or interruption in service and upon i' V' Wzerms and Conditions not less favourabie than those subeisting in the concerned petitioner~Co:npanyV eegizighe said date.
21. In the circumstances, the petiiiioneiiCefrzgianyehas' made out a case for sanctionifigev the "~Sé:he: 1'1ee'1.::):f Amalgamaticxn with the Tffi.1_".I$f§3I'€€A9COII1pé:13f';i{Cu...G;I'8.C1€v. India Private Limited, the'-...ASe1E1eme of Arnalgaxnation at .' :v: }'{éI'IfIV't"3g I pass the follewing:
- e.T§1e :5;~i:titii>n"*is ailowed. his--- Annexure«A is hereby "'sane'eid:1eV<fiv eiubzgject to the petitioner~ Complying with ail the formaiities ' Act and Rules made z Ehefefinder.
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