Section 517 - Arrangement when binding on company and creditors. - Companies Act, 1956

Arrangement when binding on company and creditors. 517. (1) Any arrangement entered into between a company about to be, or in the course of being, wound-up and its creditors shall, subject to the right of appeal under this section, be binding on the company and on the creditors if it is sanctioned by a special resolution of the company and acceded to by three-fourths in number and value of the creditors. (2) Any creditor or contributory may, within three weeks from the completion of the arrangement, appeal to the [1] [Tribunal] against it and the 1[Tribunal] may thereupon, as it thinks just, amend, vary, confirm or set aside the arrangement. ------------------------------------------- Notes:- [1] Substituted for "Court" by the Companies (Second Amendment) Act, 2002, w.e.f. a date yet to be notified.