Creditor consent in scheme proceedings justified dispensing with separate meetings and rectifying the earlier direction.

In scheme proceedings, separate meetings of secured and unsecured creditors of the transferor and transferee companies were dispensed with because the record showed creditor consent to the arrangement and later affidavits and certificates confirming compliance with the requirement that creditors holding at least ninety per cent of the value approve the scheme. On that basis, the earlier direction to convene separate meetings was treated as unnecessary and was rectified accordingly.

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Issues: Whether the meetings of secured and unsecured creditors of the transferor and transferee companies could be dispensed with and the earlier order required rectification in view of the creditors' consents and affidavits.

Analysis: The application was for rectification of the earlier directions requiring separate meetings of secured and unsecured creditors in the scheme proceedings. The record showed that the creditors of the companies had given consent for the scheme, and the applicant subsequently placed affidavits and supporting certificates to comply with the requirement that creditors holding at least ninety per cent value agree and confirm the arrangement by affidavit. On that basis, the direction to convene separate meetings was found unnecessary.

Conclusion: The meetings of secured and unsecured creditors were dispensed with, and the earlier order was rectified accordingly.

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