https://www.taxtmi.com/caselaws?id=96639 A scheme under Section 153 of the Companies Act, 1913 may be sanctioned where the meeting of depositors is properly convened and conducted, the affected depositors form a valid class, and the proposal reflects a genuine compromise or arrangement with mutual concession. The court treated notice of the application and ordered meeting as sufficient, accepted that conversion of deposits into debentures with extended repayment created a proper arrangement, and held that the depositors shared common rights and risks as a class. It also emphasised that the majority must act honestly and for the common advantage of the class, which was satisfied because the scheme preserved the business and offered a better prospect of recovery than liquidation. en-us Wed, 07 Feb 1934 00:00:00 +0530 Fri, 16 Mar 2012 19:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96639 A scheme under Section 153 of the Companies Act, 1913 may be sanctioned where the meeting of depositors is properly convened and conducted, the affected depositors form a valid class, and the proposal reflects a genuine compromise or arrangement with mutual concession. The court treated notice of the application and ordered meeting as sufficient, accepted that conversion of deposits into debentures with extended repayment created a proper arrangement, and held that the depositors shared common rights and risks as a class. It also emphasised that the majority must act honestly and for the common advantage of the class, which was satisfied because the scheme preserved the business and offered a better prospect of recovery than liquidation. Case-Laws Companies Law Wed, 07 Feb 1934 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96639