https://www.taxtmi.com/caselaws?id=98612 A sanctioned company arrangement may be brought to an end under the supervisory power in section 392 of the Companies Act, 1956 if it becomes commercially unworkable and cannot be satisfactorily implemented; the court cannot compel continued financing or operation of a loss-making undertaking where revival is no longer realistic. The text also states that an agreement to create a second mortgage in future, coupled with a promise to defer repayment until execution, does not by itself create a present charge or secured priority. Until the mortgage is executed, the creditors remain unsecured, and completion of the security cannot be ordered after winding up because it would undermine pari passu distribution. en-us Fri, 22 Nov 1968 00:00:00 +0530 Mon, 11 Aug 2014 10:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98612 A sanctioned company arrangement may be brought to an end under the supervisory power in section 392 of the Companies Act, 1956 if it becomes commercially unworkable and cannot be satisfactorily implemented; the court cannot compel continued financing or operation of a loss-making undertaking where revival is no longer realistic. The text also states that an agreement to create a second mortgage in future, coupled with a promise to defer repayment until execution, does not by itself create a present charge or secured priority. Until the mortgage is executed, the creditors remain unsecured, and completion of the security cannot be ordered after winding up because it would undermine pari passu distribution. Case-Laws Companies Law Fri, 22 Nov 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98612