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Issues:
1. Interpretation of Section 153 of the Indian Companies Act regarding the applicability of a scheme of arrangement and compromise to decree-holder creditors. 2. Retroactive application of the amended provision of the Indian Companies Act. 3. Preclusion of a party from raising objections in subsequent execution cases based on previous conduct. Analysis: 1. The judgment concerns the interpretation of Section 153 of the Indian Companies Act regarding the applicability of a scheme of arrangement and compromise to decree-holder creditors. The appellant, a decree-holder against a bank, sought execution of the decree, which was opposed by the bank citing a scheme under Section 153. The key issue was whether decree-holder creditors formed a separate class from other creditors under the scheme. Judicial opinions varied on whether a separate meeting of decree-holder creditors was necessary. The Court referred to past cases and the 1936 amendment to the Companies Act, which deemed all unsecured creditors, including decree-holders, as the same class. The Court held that the amended provision clarified existing law and applied retrospectively, supporting the view that decree-holder creditors did not require a separate meeting under the scheme. 2. The judgment addressed the retroactive application of the amended provision of the Indian Companies Act. The appellant argued that the amendment of 1936, deeming all unsecured creditors as the same class, should not apply retroactively to their 1933 decree. However, the Court held that the amendment merely clarified the existing law and explained the meaning of "creditors of the same class." The Court relied on legal principles to establish that the amendment's interpretation should relate back to the time of the prior Act, emphasizing legislative intent to provide clarity on the issue of creditor classification. Consequently, the Court affirmed the lower courts' decision based on the amended provision. 3. The judgment briefly discussed the preclusion of a party from raising objections in subsequent execution cases based on previous conduct. The appellant argued that the bank was precluded from objecting to the execution due to a lack of objection in a previous execution case. However, the Court noted that this point was not addressed in the lower courts' judgments, and there were no supporting materials presented. As a result, the Court did not consider this argument in the appeal and proceeded to dismiss it without making any order as to costs.
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