https://www.taxtmi.com/caselaws?id=96972 Section 153 of the Companies Act stays only proceedings that are adjustable between a company and its creditors or members. A complainant is not a creditor merely because he alleges wrongful non-delivery of property or seeks damages; the legal character of the claim must be examined first. Where the complaint concerns specific shares allegedly purchased and held in safe custody for the complainant, the matter may involve legal entrustment and fall outside the stay as a criminal breach of trust claim. Where it is only an account-based claim against the company, the complainant may be treated as a creditor and the stay may apply. The decisive issue is the true factual basis of the complaint. en-us Fri, 16 Jan 1948 00:00:00 +0530 Fri, 13 Jan 2012 14:59:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96972 Section 153 of the Companies Act stays only proceedings that are adjustable between a company and its creditors or members. A complainant is not a creditor merely because he alleges wrongful non-delivery of property or seeks damages; the legal character of the claim must be examined first. Where the complaint concerns specific shares allegedly purchased and held in safe custody for the complainant, the matter may involve legal entrustment and fall outside the stay as a criminal breach of trust claim. Where it is only an account-based claim against the company, the complainant may be treated as a creditor and the stay may apply. The decisive issue is the true factual basis of the complaint. Case-Laws Companies Law Fri, 16 Jan 1948 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96972