https://www.taxtmi.com/caselaws?id=96798 Stay of proceedings under section 277N was treated as available only where the company showed a merely temporary inability to meet its obligations. The Court found that the Registrar's report and the material before it showed liabilities substantially exceeding assets, and the proposed composition scheme itself contemplated payment to depositors only over several years, which was inconsistent with a short-lived financial embarrassment. On that basis, the Court concluded that judicial protection was not intended for an essentially insolvent company so as to bar creditors from ordinary remedies, and the stay was withdrawn with the application dismissed. en-us Thu, 17 Aug 1939 00:00:00 +0530 Wed, 11 Jan 2012 12:09:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96798 Stay of proceedings under section 277N was treated as available only where the company showed a merely temporary inability to meet its obligations. The Court found that the Registrar's report and the material before it showed liabilities substantially exceeding assets, and the proposed composition scheme itself contemplated payment to depositors only over several years, which was inconsistent with a short-lived financial embarrassment. On that basis, the Court concluded that judicial protection was not intended for an essentially insolvent company so as to bar creditors from ordinary remedies, and the stay was withdrawn with the application dismissed. Case-Laws Companies Law Thu, 17 Aug 1939 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96798