https://www.taxtmi.com/caselaws?id=98346 A scheme of reconstruction under section 153 of the Indian Companies Act, 1913 is not sanctionable merely because the statutory majority of creditors and shareholders approved it. Judicial sanction still requires the court to be satisfied that the majority acted bona fide, the class was fairly represented, and the scheme is fair, reasonable and workable. Where a company is insolvent, lacks realistic business prospects, seeks to transfer personal liabilities of directors, relies on unrealistic asset valuation, or omits material facts such as pending misfeasance proceedings, the scheme may properly be refused sanction and winding up may continue. en-us Sat, 20 Aug 1966 00:00:00 +0530 Fri, 20 Jan 2012 12:23:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98346 A scheme of reconstruction under section 153 of the Indian Companies Act, 1913 is not sanctionable merely because the statutory majority of creditors and shareholders approved it. Judicial sanction still requires the court to be satisfied that the majority acted bona fide, the class was fairly represented, and the scheme is fair, reasonable and workable. Where a company is insolvent, lacks realistic business prospects, seeks to transfer personal liabilities of directors, relies on unrealistic asset valuation, or omits material facts such as pending misfeasance proceedings, the scheme may properly be refused sanction and winding up may continue. Case-Laws Companies Law Sat, 20 Aug 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98346