Hon’ble NCLT Chandigarh Bench held that Preference shares can be redeemed out of the profits of the company, which would otherwise be available for dividend or out of the proceeds of a fresh issue of shares made for the purposes of such redemption and where a company is not in a position to redeem any preference shares, it may, with the consent of the holders of three-fourths in value of such preference shares, after passing the special resolution in the general meeting of the Petitioner Company and with the approval of the Tribunal, issue further redeemable preference shares equal to the amount due, including the dividend thereon; provided that the Tribunal shall, order the redemption forthwith of dissenting preference shareholders.