NATIONAL ORGANIC CHEMICAL INDS. LTD. vs MIHEER H. MAFATLAL

The Supreme Court upheld the decision of the Gujarat High Court regarding the approval of an amalgamation scheme under Section 391 of the Companies Act, affirming that the scheme had the requisite majority support despite objections regarding share allotment. The Court clarified that the appellant, not being a party to the original injunction proceedings, could not be held liable for the alleged breach of the injunction. The ruling emphasized that the jurisdiction of the Company Court was limited to approving the scheme and did not extend to adjudicating on the validity of share allotments made prior to the amalgamation petition.