https://www.taxtmi.com/caselaws?id=98434 A scheme under section 391 was held applicable to a Government company, as the Companies Act did not exclude such companies from the arrangement provisions. Workers were not treated as creditors for invalidating the scheme, because no individual wage claim within the scheme required notice to them as creditors, and the court's modification protected employees not absorbed by ensuring lawful dues and admissible compensation. The arrangement was also treated as a reconstruction under section 394 because, in substance, it transferred the undertaking, continued the business through the transferee, and contemplated closure of the transferor. The sanctioned scheme was upheld. en-us Fri, 14 Jul 1967 00:00:00 +0530 Fri, 20 Jan 2012 16:17:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98434 A scheme under section 391 was held applicable to a Government company, as the Companies Act did not exclude such companies from the arrangement provisions. Workers were not treated as creditors for invalidating the scheme, because no individual wage claim within the scheme required notice to them as creditors, and the court's modification protected employees not absorbed by ensuring lawful dues and admissible compensation. The arrangement was also treated as a reconstruction under section 394 because, in substance, it transferred the undertaking, continued the business through the transferee, and contemplated closure of the transferor. The sanctioned scheme was upheld. Case-Laws Companies Law Fri, 14 Jul 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98434