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TMI Blog1935 (8) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... me are the following : 8th January, 1933: A meeting by the shareholders of the bank for the purpose of devising means for stopping payment of interest and withdrawal of deposits. 21st February, 1933: A resolution was passed by the shareholders authorising the filing of an application on behalf of the bank in the High Court under Section 153, Companies Act, proposing an arrangement between itself and its creditors. 20th April, 1933: The said application was moved and the preliminary order was passed by the High Court directing a meeting of the creditors to be held. 21st May, 1933: The said meeting was held and the majority of creditors representing more than three-fourths in value agreed to the arrangement proposed. 19th June, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision of my learned brothers Guha and Lodge, JJ., in Barisal Loan Office, Ltd. v. Sasthi Charan (Appeal No. 70 of 1934, decided on 26 June, 1935 [1935] 5 Comp. Cas. 362 . It is no doubt in conflict with the decision of my learned brother Henderson, J., in Sushila Bala Basu v. Anjuman Trading Banking Corporn. AIR 1935 Cal. 398 but I prefer to follow the decision in the case of Barisal Loan Office Ltd.' s case ( supra ) not only because it is the decision of a Division Bench, and so binding on me, but also because its ratio recommends itself to me. Section 153 of the Companies Act, no doubt, confers an extraordinary power on the majority to bind the minority. Ordinarily an arrangement or composition is binding on parties w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id majority. Unsecured creditors of a company who have already obtained decrees against the company are in my judgment within the same class as unsecured creditors who have not obtained decrees against the company; they do not form a distinct class. Their rights against the company are not so dissimilar as to make it impossible for them to consult together with a view to the common interest in a meeting held under the directions of the Court given under Section 153 of the Act. This is the view which has been taken by my learned brother Cunliffe, J., Jalpaiguri Banking and Trading Co., In re [1935] 5 Comp. Cas. 385 (Cal.) following the test propounded by Bowen, L.J., in Sovereign Life Assurance Co. v. Dodd [1892] 2 KB 573 . With t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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