Corporate News
The National Company Law Tribunal’s Mumbai Bench has approved a scheme of arrangement for the absorption of one company into AESL, requiring the filing of the order and scheme with the Registrar of Companies within 30 days. Addressing concerns raised by ACIL regarding restrictions on transferring participating interests and potential overcharging in inter-company transactions between Oilmax and AESL, the NCLT clarified that all claims against either company will remain enforceable against AESL and mandated AESL preserve relevant records for eight years. The absorbed company will be dissolved without winding up, and all employee transfers will occur on favorable terms, while tax liabilities and incentives are also transferred. The tribunal noted that the question of whether the absorption constitutes a "transfer" remains unadjudicated and that regulatory approval will satisfy concerns regarding transfers.