9911796707
TMI Blog1935 (3) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... for the benefit of fuller arguments on the part of the Counsel, ought to be dismissed. It is raised in relation to a proposed scheme of reconstruction put forward by shareholders and persons interested in a concern, called the Jalpaiguri Banking and Trading Company. That company I am informed was operating very largely in the tea trade. It carried on its business by making advances on loans to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also with their depositors. It seems to me that it is much easier to divide the depositors of a company into their separate classes than it is to divide the creditors of a company. It is not very difficult to visualise that a debenture-holder has quite a different outlook from, shall I say, a holder of ordinary shares, but when it comes to creditors it seems to me to be much more difficult. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this very same section. The Lord Justice said in this case: "The word 'class' is vague, and to find out what is meant by it we must look at the scope of the section which is a section enabling the Court to order a meeting of class creditors to be called. It seems plain that we must give such meaning to the term 'class' as will prevent the section being so worded as to result in confiscation an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decree. There is a well known and often quoted phrase which I think was used by Lord Justice James in relation to a reconstruction scheme and it is this : "It is not for the Court to sanction a scheme which allows one class of creditor or depositor to feast upon the rights of another class" and if I thought here that lumping together unsecured creditors, whether they have got decrees or not, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
