PANNALAL BHANSALI versus BHARTI TELECOM LIMITED & ORS.

Case summary from SCR

Issue for Consideration Issue arose whether the reduction of share capital u/s.66 of the Companies Act, 2013, and the consequent forced exit of minority shareholders, was arbitrary and unfair. Headnotes† Companies Act, 2013 – s.66 – Reduction of share capital – company, held a fraction of 1.09% of shares – Respondent no.1 decided to reduce its share capital u/s.66, by cancelling 28,457,840 equity shares held by the minority shareholders and paying them an exit price of Rs.163.25 per share which was subsequently raised to Rs.196.80 per share