Revival scheme approved where creditor dues were settled and no surviving objections blocked recall of the winding-up order.

A revival scheme may be sanctioned for a company in liquidation when secured and relevant unsecured liabilities have been settled, the Official Liquidator's report shows no surviving impediment, and no effective creditor objection remains. Here, the Court noted that secured creditors had been paid, no-dues certificates were on record, and the objections raised after public notice did not defeat the proposed revival. It also considered the liquidation record, sale-related reports, and the treatment of a post-winding-up transfer as void in the liquidation context. On that basis, the scheme was approved, the winding-up order was recalled, and the company was permitted to be revived, with the petitioner assuming future liabilities.

---

---

Issues: Whether the scheme of arrangement for revival of the company in liquidation should be sanctioned and the winding-up order recalled.

Analysis: The company had already discharged the secured creditors and relevant no-dues certificates were on record. The Official Liquidator's reports showed that the secured creditor's dues stood settled, no effective claim survived from the creditors who were called upon, and the objections invited through public notice did not prevent the proposed revival. The Court also took note of the earlier liquidation proceedings, the sale-related reports, and the fact that the impugned post-winding-up transfer was treated as void in the liquidation context. In these circumstances, the Court found sufficient basis to approve the revival proposal.

Conclusion: The scheme of arrangement for revival was approved and the prayer to revoke the winding-up order was granted.

Final Conclusion: The company was permitted to be revived, with the petitioner assuming responsibility for any future liabilities of the company in liquidation.

Ratio Decidendi: A revival scheme may be sanctioned where the secured and relevant unsecured liabilities have been settled, the Official Liquidator's report does not disclose any subsisting impediment, and no effective creditor opposition survives.

---