If the parameters for sanctioning the scheme of Arrangement of Demerger are complete, then the NCLT would only have a Supervisory Jurisdiction – Oriental Carbon and Chemicals Ltd. Vs. OCCL Ltd. – NCLAT New Delhi
June 10, 2024
While sanctioning the scheme of arrangement if the Court comes to a conclusion that the provisions of statute have been complied with; and that there is no violation of any provision of law, or the proposed scheme of compromise or arrangement is not unquestionable, unconscionable or contrary to public policy, then the NCLT has no further jurisdiction to sit in appeal over the commercial wisdom of the class of person who with their eyes open have given their approval, even if, the Court is of the view that better scheme could have been framed. Further we also agree the alterations in the appointed date would affect the calculation and would have a serious financial implication. Hence if the parameters for sanctioning the scheme are complete, then the Tribunal would only have a supervisory jurisdiction.