https://www.taxtmi.com/caselaws?id=96688 A scheme of arrangement sanctioned under Section 153 of the Companies Act binds the minority once the statutory majority and court safeguards are satisfied. The court must be satisfied that the arrangement is reasonable, practicable and bona fide, and that distinct classes are properly treated without one class overriding another. Unsecured creditors who hold decrees are not, merely because of the decree, a separate class from other unsecured creditors where their rights against the company remain substantially the same for consultation and collective decision-making. The decree-holder was therefore bound by the sanctioned scheme, and independent execution could not proceed outside the composition accepted by the majority. en-us Fri, 09 Aug 1935 00:00:00 +0530 Tue, 10 Jan 2012 13:02:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96688 A scheme of arrangement sanctioned under Section 153 of the Companies Act binds the minority once the statutory majority and court safeguards are satisfied. The court must be satisfied that the arrangement is reasonable, practicable and bona fide, and that distinct classes are properly treated without one class overriding another. Unsecured creditors who hold decrees are not, merely because of the decree, a separate class from other unsecured creditors where their rights against the company remain substantially the same for consultation and collective decision-making. The decree-holder was therefore bound by the sanctioned scheme, and independent execution could not proceed outside the composition accepted by the majority. Case-Laws Companies Law Fri, 09 Aug 1935 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96688