#merger

NCLAT Chennai held that at the first-motion stage of a scheme merger under Sections 230-232 of the Companies Act 2013, tribunals cannot reject the scheme merely because shareholders and creditors have not yet voted; the matter must proceed to their approval. The ruling clarifies that premature tribunal interference undermines the statutory merger process and affects companies seeking amalgamations.

The Madurai Bench of the Madras High Court ruled that employees of merged cooperative societies retain seniority from the merger date under Section 149(2-A) of the TNCS Act, 1983, and that a writ petition challenging show-cause notices is premature when a revision remedy exists. The decision safeguards seniority rights in cooperative mergers and curbs premature writ filings.