NCLT Bangalore allows plea to extend tenure for redeeming Cumulative Preference Shares by 2 years in light of COVID-19, ensuing economic slowdown

“In view of COVID-19 pandemic and the resulting economic slowdown, leading to the Company’s inability to mobilize funds, we are of the considered view that the Petition deserves to be allowed," the NCLT said.
NCLT Bangalore
NCLT Bangalore

The National Company Law Tribunal (NCLT), Bangalore recently allowed a petition to extend the tenure of 5% Redeemable Cumulative Preference Shares by two years given the company's inability to mobilise funds to redeem the same on account of the COVID-19 pandemic and the resulting economic slowdown (M/s. Indiana Hospital and Heart Institute Limited v. Ministry of CorporateAffairs).

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