2000 (12) TMI 871 - SC - Companies Law

Compromise and arrangement - Held that - The appropriate time for the company judge to consider the scheme is subsequent to approval thereof by the shareholders and creditors of the appellant-company. Therefore, the order of the learned company judge and the order under appeal must be set aside and liberty given to the appellant-company to move the High Court for directions for calling meetings of its shareholders and creditors for the purposes of considering and approving the scheme. Once that has been done, a further application will be required to be made before the learned company judge.

Summary

The Supreme Court allowed I.A. No. 2 and granted leave in the case where the appellant sought permission to dispense with calling meetings of shareholders and creditors for a scheme of arrangement. The Division Bench dismissed the appeal but allowed the appellant to file a fresh application for approval of the scheme. The court set aside the orders and granted liberty to the appellant to move the High Court for directions for calling meetings of shareholders and creditors for scheme approval.