https://www.taxtmi.com/caselaws?id=96698 A sanctioned compromise or arrangement under section 153 of the Companies Act binds both the creditors and the company. The Calcutta High Court accepted that this binding effect is not confined to the winding-up context and may be protected against execution proceedings in another court. Where a decree-holder seeks to execute a decree in a manner that would defeat the sanctioned scheme, the Court may restrain those proceedings and grant an injunction to preserve the scheme's operation. The ruling emphasises that the court's protective jurisdiction extends to preventing the nullification of a validly sanctioned arrangement. en-us Mon, 25 Nov 1935 00:00:00 +0530 Tue, 10 Jan 2012 13:33:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96698 A sanctioned compromise or arrangement under section 153 of the Companies Act binds both the creditors and the company. The Calcutta High Court accepted that this binding effect is not confined to the winding-up context and may be protected against execution proceedings in another court. Where a decree-holder seeks to execute a decree in a manner that would defeat the sanctioned scheme, the Court may restrain those proceedings and grant an injunction to preserve the scheme's operation. The ruling emphasises that the court's protective jurisdiction extends to preventing the nullification of a validly sanctioned arrangement. Case-Laws Companies Law Mon, 25 Nov 1935 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96698