NCLT Mumbai Approves Reduction of Share Capital of Batot Hydro Power Limited
Court / Authority
NCLT & NCLAT
Update / Judgement Date
19 Jun 2026
Source
WCP News Bulletin
Author
Manas Yadav — WCP Legal Desk
Reading Time
2 min read
View Count
Background
The National Company Law Tribunal, Mumbai Bench (Court-IV) has approved the reduction of equity share capital of Batot Hydro Power Limited, allowing the company to restructure its balance sheet by writing off accumulated losses. Batot Hydro Power Limited had approached the Tribunal under Section 66 of the Companies Act, 2013 seeking confirmation of a reduction in its paid-up equity share capital. The company proposed to reduce its paid-up capital from ₹55 crore to ₹20.90 crore by cancelling ₹34.10 crore of equity share capital, corresponding to accumulated losses reflected in its books. The proposal was approved by the Board of Directors through a resolution dated 16 September 2024, followed by a special resolution passed by shareholders on 8 October 2024. The company stated that the reduction was aimed at restructuring the balance sheet and presenting a true and fair view of its financial position.
The Regional Director (Western Region) filed a report raising certain procedural and compliance-related observations, including quorum requirements for the shareholders’ meeting, accounting treatment, service of notices to creditors, and disclosures relating to beneficial ownership. The company furnished detailed undertakings and supporting documents in response, including an auditor’s certificate confirming that the proposed accounting treatment complied with Section 133 of the Companies Act, 2013. The Tribunal noted that there were no secured creditors and only two unsecured creditors, whose interests were duly protected. It was also recorded that the company was not in arrears of statutory dues or deposits.
Finding that all statutory requirements had been complied with and that no objections had been raised by creditors or stakeholders, the Bench allowed the petition.
Outcome
The NCLT approved the reduction of share capital and directed the company to publish notices of registration of the order and minutes of reduction in Business Standard (English) and Navshakti (Marathi). The reduced paid-up equity share capital of Batot Hydro Power Limited now stands at ₹20.90 crore, comprising 2.09 crore equity shares of ₹10 each.
Full Judgement / Attachment
Full Judgement
Frequently asked questions about NCLT & NCLAT
- What are the NCLT and NCLAT?
- The National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) were constituted on 1 June 2016 under the Companies Act, 2013. The NCLT sits in benches across India, and the NCLAT hears appeals from it, with its principal bench in New Delhi and a bench in Chennai.
- What cases does the NCLT hear?
- The NCLT is the Adjudicating Authority for corporate insolvency under the IBC. It also hears company law matters, including oppression and mismanagement petitions, schemes of merger and demerger, reduction of capital, and class action suits.
- What is the time limit to appeal an NCLT order to the NCLAT?
- Under the Companies Act, the appeal is due within 45 days, extendable by up to 45 days. Under the IBC, it is due within 30 days, extendable by up to 15 days. These outer limits are strictly applied.
- How can I check NCLT case status or orders?
- Case status, cause lists and orders are available on the NCLT website (nclt.gov.in) and the NCLAT website (nclat.nic.in), searchable by case number, party name or bench.
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