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Under Sections 230, 231 and 232 of the Companies Act, 2013, the NCLT supervises **compromise, arrangement and amalgamation** schemes. According to the powers table, the NCLT under Section 230(6) is empowered to:
A{'text': 'Direct the Securities and Exchange Board of India to immediately delist the company under any provision of any law in force in any State of India regardless of any other consideration of any kind', 'label': 'A'}
B{'text': 'Sanction the compromise or arrangement agreed to at the meeting of creditors or members ordered by the Tribunal', 'label': 'B'}
C{'text': 'Direct the Reserve Bank of India to immediately cancel all bank accounts of the company under any provision of any law in force in any State of India regardless of any other consideration of any kind', 'label': 'C'}
D{'text': 'Direct the Registrar of Companies to immediately cancel the certificate of incorporation of the company under any provision of any law in force in any State of India regardless of any other consideration of any kind', 'label': 'D'}
Answer & Solution
Correct answer: B. {'text': 'Sanction the compromise or arrangement agreed to at the meeting of creditors or members ordered by the Tribunal', 'label': 'B'}
1. Sections 230-232, Companies Act, 2013 govern compromises, arrangements and amalgamations.
2. The powers table entry for **Section 230(6)** reads: "**To sanction compromise or arrangement** agreed to at the meeting of creditors/members ordered by the Tribunal."
3. Section 230(1) deals with directing the meeting; Section 230(9) deals with dispensing with the meeting; Section 230(12) addresses takeover grievances.
4. Section 231 then enables enforcement of the sanctioned scheme.
_Source: ICSI CS Executive Paper 1 — Jurisprudence, Interpretation & General Laws, Lesson 12 (Special Courts, Tribunal under Companies Act and other Legislations), pp. 273-283._
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