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Issues:
1. Validity of proxies used at a statutory meeting of creditors under section 153 of the Indian Companies Act. 2. Appeal against the order regarding rejection of proxy forms. 3. Preliminary objection on the appealability of the order. 4. Interpretation of the role of scrutineers in assisting the Chairman of the meeting. 5. Locus standi of the petitioners to present the petition. 6. Court's jurisdiction to consider the validity of proxies before the Chairman's decision. 7. Entitlement of the court to entertain the appeals. 8. Cost allocation for the liquidators. Analysis: 1. The judgment addresses the validity of proxies used at a statutory meeting under the Indian Companies Act. The petition for directions regarding the proxies was filed by appointed scrutineers. The court held that contravention of rules rendered all proxy forms invalid, necessitating another meeting of creditors. 2. Appeals were filed against the order rejecting proxy forms. The appeals were made by the liquidators, elected committee members, and other creditors. A preliminary objection was raised on the appealability of the order, contending that no appeal lies. However, the court rejected this objection, emphasizing the importance of creditor decisions in such meetings. 3. The court determined that the order to hold another meeting was appealable as it significantly impacted the creditors' decisions and the future of the company. The court cited relevant case law to support the appealability of the order, ultimately allowing the appeals and setting aside the initial order. 4. The judgment clarifies the role of scrutineers in assisting the Chairman and highlights that the decision on the validity of proxies rests with the Chairman, not the scrutineers. The Chairman's decision on proxy admissibility is deemed final unless revised by the court, emphasizing the procedural importance of the Chairman's role. 5. It was emphasized that the petitioners, acting as scrutineers, lacked the standing to present the petition regarding proxy validity. The court underscored that the Chairman's decision on proxies must be respected unless brought for revision, indicating that the petition was premature. 6. The court reiterated that it should not assess the validity of proxies before the Chairman's decision. The judgment emphasized the procedural protocol and the Chairman's authority in determining proxy admissibility, cautioning against premature interference by the court. 7. The judgment concluded by affirming the court's entitlement to entertain the appeals, with all parties consenting to setting aside the initial order. Additionally, the allocation of costs for the liquidators was specified to be covered by the company's funds. 8. In a concurring opinion, Justice Mya Bu agreed with the decision and did not offer any separate analysis or dissenting views.
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