Mawana Sugars Limited's Amalgamation Scheme Sanctioned by NCLT

Mawana Sugars Limited (Transferee Company) has received approval from the Hon'ble National Company Law Tribunal (NCLT), Delhi Bench, for its Scheme of Amalgamation. The scheme involves the amalgamation of Mawana Foods Private Limited (Transferor Company) with and into Mawana Sugars Limited. The NCLT's order, dated September 3, 2026, sanctions the scheme under Sections 230 to 232 of the Companies Act, 2013.

The rationale behind the amalgamation is to consolidate businesses, create synergies, leverage existing strengths, and optimize resource utilization. This is expected to lead to more efficient cost management, streamlined operations, and a stronger base for future growth. The scheme aims to simplify the corporate structure, eliminate administrative duplications, and rationalize expenses.

The NCLT considered reports and responses from various statutory authorities, including the Registrar of Companies (RoC), Regional Director (RD), and the Income Tax Department (ITD). The RD expressed satisfaction with the clarifications provided by Mawana Sugars Limited regarding pending statutory dues and cash losses of the transferor company. The ITD also raised observations concerning outstanding demands and pending proceedings, to which Mawana Sugars Limited provided responses and undertakings to settle all dues and liabilities.

The scheme, with an appointed date of April 1, 2025, was unanimously approved by the equity shareholders and unsecured creditors of Mawana Sugars Limited. The NCLT emphasized that the sanction does not exempt the company from any statutory compliances or liabilities and that all pending proceedings and liabilities of the transferor company will be assumed by the transferee company. The transferor company will stand dissolved without winding up.