https://www.taxtmi.com/caselaws?id=96784 In winding up, the court may sanction a compromise of a debt due to the company only where the liquidator, after investigation, states by affidavit that the compromise will benefit the company. The statutory power under the Companies Act operates as the liquidator's power with judicial sanction, and does not authorise the court to compel an unwilling liquidator to accept a compromise or further reduce the debt. Where the liquidator cannot affirm that the proposed reduction is beneficial, the statutory condition for sanction is not met, and the compromise must be refused. en-us Fri, 25 Nov 1938 00:00:00 +0530 Wed, 11 Jan 2012 11:30:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96784 In winding up, the court may sanction a compromise of a debt due to the company only where the liquidator, after investigation, states by affidavit that the compromise will benefit the company. The statutory power under the Companies Act operates as the liquidator's power with judicial sanction, and does not authorise the court to compel an unwilling liquidator to accept a compromise or further reduce the debt. Where the liquidator cannot affirm that the proposed reduction is beneficial, the statutory condition for sanction is not met, and the compromise must be refused. Case-Laws Companies Law Fri, 25 Nov 1938 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96784