Alleged creditor objection to memorandum alteration cannot block confirmation when the claim can be secured.

An alleged creditor's objection to confirmation of special resolutions altering a company's memorandum was not enough to stop the alteration where the company disputed the liability and was willing to secure the claim. The court treated section 45 of the Banking Companies Act as relevant to the petitioning procedure under the Companies Act, but found no sufficient ground to refuse confirmation because the objector's concern was repayment, not control of the company's business policy. The alteration was therefore confirmed, subject to the company furnishing security for the amount claimed within the time fixed by the court.

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Issues: Whether the special resolutions altering the memorandum of association of the company should be confirmed despite the objection of an alleged creditor, and whether the company could proceed under the Companies Act in the light of section 45 of the Banking Companies Act.

Analysis: The petition sought confirmation of alterations to the memorandum under the statutory procedure for alteration of objects. The objector claimed creditor status, but the company disputed the liability and the matter was stated to be pending before the Industrial Tribunal. The Court held that section 45 of the Banking Companies Act controlled the petitioning procedure under the Companies Act, though the proposed resolutions were not clearly a compromise or arrangement. Even so, the objector was concerned only with securing payment of his claim and could not dictate the company's business policy. Since the company was prepared to furnish security for the amount claimed, there was no sufficient ground to refuse confirmation.

Conclusion: The objection was overruled and the special resolutions were confirmed, subject to the company furnishing security for the amount claimed by the objector within the time fixed by the Court.

Ratio Decidendi: An alleged creditor cannot veto a company's alteration of its memorandum where his monetary claim can be secured, and the court may confirm the alteration subject to adequate security.

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