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TMI Blog2001 (8) TMI 1247X X X X Extracts X X X X X X X X Extracts X X X X ..... not immediately when the deposits matured for repayment. The Company also submitted four different schemes for the consideration of the CLB. The CLB was convinced that the Company would be in a position to repay all the deposits already matured and also those which would be maturing in future, provided, some reasonable time was given to the Company. However, the CLB found that none of the schemes submitted by the Company could be accepted. Hence the CLB rejected them and directed the company to furnish a better scheme. In compliance with the said direction the company furnished another scheme. Ultimately, after taking into consideration the interest of the company, the interest of the depositors and also the public interest, the CLB passed an order dated 17-7-1998 issuing certain directions regarding the payments to be made to the depositors. As per the said order of the CLB all depositors of Rs. 10,001 to Rs. 25,000 shall be repaid in 3 years including the interest, from the dates of maturity at 30 per cent in the first years, 30 per cent in the second year and balance 40 per cent in the third year. The interest for both pre-and-post maturity periods will be paid along with the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter the petition filed under section 391/394 is disposed of by the High Court. 2. According to the applicants, though they surrendered the fixed deposits receipts for repayment, the repayment was not made by the company as directed by the CLB. The applicants allege that in spite of the directions given by the CLB, the Company did not set apart an amount of Rs. 1 crore to meet the needs of the hardship cases. It is stated that the applicants are aged 76 years and 69 years respectively and that they need money for medical treatment. The applicants have produced photocopies of the prescription and certificates issued from the AIIMS and the G.B. Pant Hospital. It is alleged that since June 1999 the applicants requested the company every month in writing to repay the full amount along with interest to enable them to meet their medical requirements but there was no favourable response. The applicants have also stated that they are opposing the scheme of arrangement proposed by the company under section 391/394. The applicants pray for a direction to the company to immediately pay the amount of Rs. 1,58,994 (payable on 29-9-2000) along with interest upto date (less already paid from J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany cannot give preference to one creditor over others and that the company has moved a composite scheme for equitable repayment to all its creditors without giving preference to any individual creditor. The respondents have also pointed out in the reply that the company had filed CA No. 891 of 2000 seeking stay of commencement or continuation of any suit or proceeding against the company and this Court vide order dated 6-7-2000 has directed that no judgment or decree shall be executed against the company. The respondents have stated in the reply that the company has already paid to the applicants more than what they would have been paid under the proposed scheme of arrangement. The details of such payments are given in the reply. As against the total maturity amount of Rs. 1,31,796 the applicants have already been paid a sum of Rs. 92,000. According to the respondents, the applicants have already been paid almost 70 per cent of their maturity amount in cash whereas the scheme under the consideration of this Court envisages the payment of only the principal amount. 4. According to Mr. Rajiv Nayyar, the learned senior counsel appearing for the respondents, when an applicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be entertained by this Court. Since the scheme of arrangement has been approved by the majority of the creditors and since there is the possibility of the said scheme being sanctioned by this Court, ordinarily any request for payment should await the decision of this Court on the petition for sanction of the scheme. The spirit of the provisions contained in sections 391 to 394 requires the Court to follow such a course of action. But it cannot be said that pending decision on the petition for sanction of the scheme, this Court has no power or jurisdiction to entertain an application for direction to make payment to the creditors. The learned counsel for the respondents could not point out any provision in the Act or any other law which specifically prohibits the filing of such an application or passing of any order on such application. As rightly submitted by applicant Shri Ram Prakash Gupta, this Court has got inherent power to do complete justice and such inherent power has not been taken away or inhibited by any provision in the Act. Therefore, the question is whether there are extraordinary circumstances warranting a deviation from the normal course and justifying a direct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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