https://www.taxtmi.com/caselaws?id=96975 A scheme of arrangement was refused sanction because the statutory majority had not approved it on a fair and complete disclosure of material facts, including serious discrepancies in the financial statements and the unresolved Eastern Agency account. The Court held that such non-disclosure prevented informed creditor and shareholder consent. Sanction was also refused because the scheme was not workable: the company's cash position, short-term liabilities, doubtful realisability of assets, ongoing expenses, and uncertain recoveries showed it could not be carried out in practice. As the company's inability to pay debts was not disputed and the creditor's debt was proved, winding up was ordered. en-us Tue, 27 Jan 1948 00:00:00 +0530 Fri, 13 Jan 2012 15:03:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96975 A scheme of arrangement was refused sanction because the statutory majority had not approved it on a fair and complete disclosure of material facts, including serious discrepancies in the financial statements and the unresolved Eastern Agency account. The Court held that such non-disclosure prevented informed creditor and shareholder consent. Sanction was also refused because the scheme was not workable: the company's cash position, short-term liabilities, doubtful realisability of assets, ongoing expenses, and uncertain recoveries showed it could not be carried out in practice. As the company's inability to pay debts was not disputed and the creditor's debt was proved, winding up was ordered. Case-Laws Companies Law Tue, 27 Jan 1948 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96975