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Utilising premium on redemption

Querist : Anonymous (Querist) 19 August 2011 This query is : Open 
As per the Sec 80, redemption can be made out of fresh issue of capital. Also share premium can be utilised for issue of capital as bonus share. In such case, is it prohibited, if the share premium is first utilised for issue of capital and on such fresh issue of capital, existing preference share capital be redeemed? The purpose is,if the company does not have enough profit available for dividend including CRR but has share premium available for this purpose. Is this route explicitly prohibited in company Law? If so, why?
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