"The merger between the two companies was initially announced in August 2020, with the Competition Commission of India (CCI) granting approval in February 2021. Following this, the Bengaluru bench of the National Company Law Tribunal (NCLT) also gave its approval.
However, the deal faced its first obstacle in March 2023 when the Chandigarh bench of the NCLT halted the merger due to concerns raised by the income tax department. In response, Indiabulls decided to challenge the NCLT Chandigarh ruling at the NCLAT.
After extended deliberations, the NCLAT has now approved the merger, dismissing the concerns raised by the income tax department and other parties. This ruling aims to resolve the issue that has spanned over four years."
What implication does this order will have? How do you read the order in terms of Revenue potential from this merger and any unexpected positive outcome you believe can be created here going forward?
Change in the management, which was the catalyst that everyone was waiting for last 4 years.
OfCourse, to block this further, the culprits can go to Supreme court.
A break of the trendline should confirm that finally its time has come.
By âculpritsâ I assume you mean Tejo. IMHO he has no locus standi. His plea has been rejected by SEBI, NCLT and NCLAT summarily, I donât see why SC will entertain him. He tried going to HC as well earlier but was told that HC wasnât the right forum for his complaint.
Do note that NCLT Chandigarh, did not reject the merger plan because of the objections put forth by Tejo but because of IT Dept and the later wonât be going to SC because they have informed the NCLAT that they are ok with the merger till their interests (tax due to them) are taken care off. For that, the Company has filled affidavit that they will ensure payment of all taxes due.
I agree with the other members that the Honâble Supreme Court would not indulge itself or even entertain a plea in this matter now at the lower courts have released a very detailed speaking order in the matter concern and as far as Appellete is concerned, it will be presumed that all the QUESTIONS OF FACT have been scrutinized duly. In order to invoke SC jurisdiction the appellants will have to explore any QUESTION OF LAW wherein Interpretation needs to be pondered upon. So I believe appellants wont stand before SC
