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The Securities & Exchange Board Of India ... vs Sterlite Industries (India) Ltd. on 15 July, 2002

6. It is pointed out that the only observation of the Regional Director pertain to the compliance of the procedure prescribed under Sec. 77 A of the Companies Act, 1956 for the buyback of the shares by the company. As against that Mr. Soparkar, learned senior counsel appearing for the petitioner has submitted that section 77A was not given any overriding effect over the provisions of Section 391. The legislative intention behind the introduction of Sec. 77A is only to provide an alternative method by which the company can buy back its shares. There is no legal bar to propose the buy back under Sec. 391 and the petitioner company has chosen to adopt the said scheme under Sec. 391 of the Companies Act, 1956 and it is well settled that this Hon'ble court has power to sanction such a scheme. Reliance is placed on several decisions of different High Courts viz. the Bombay High Court in the case of SEBI v. Sterlite Industries (India) Limited, reported in (2003) 113 Company Cases 273, the Gujarat High Court in the case of Gujarat Ambuja Exports Limited reported in (2004) 118 Co. Cases 265 as well as the Andhra Pradesh High Court in the case of T.C.L. Industries Limited, reported in (2004) 118 Co. Cases 373.
Bombay High Court Cites 31 - Cited by 19 - Full Document
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