Section 66 and 68 of the Companies Act, 2013 are separate and independent and the conditions prescribed under section 68 of the Act shall not be applicable in case of capital reduction under section 66 of the Act – Ferrero India Pvt. Ltd. – NCLT Mumbai Bench
December 13, 2024
Hon’ble NCLT Mumbai Bench held that a company is free to opt for reduction under section 66 of the Act even if conditions prescribed under section 68 of the Act are not met. However, the Company has to ensure all the compliances which are required for capital reduction as laid down under section 66 of the Act including but not limited to securing the interest of its creditors.