https://www.taxtmi.com/caselaws?id=99738 Compromises in proceedings under sections 397 and 398 of the Companies Act, 1956 require court scrutiny before recording under Order 23, rule 3 CPC, because such proceedings concern the company's management and wider corporate interests rather than a purely private dispute. A compromise may be accepted only if the court is satisfied that it is lawful, bona fide and in the interests of the company as a whole. Where proposed terms would give conflicted petitioners control of management and majority shareholding, and would affect non-party shareholders, the compromise is not fit to be sanctioned or recorded. en-us Thu, 19 Jul 1979 00:00:00 +0530 Mon, 30 Jan 2012 10:21:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=99738 Compromises in proceedings under sections 397 and 398 of the Companies Act, 1956 require court scrutiny before recording under Order 23, rule 3 CPC, because such proceedings concern the company's management and wider corporate interests rather than a purely private dispute. A compromise may be accepted only if the court is satisfied that it is lawful, bona fide and in the interests of the company as a whole. Where proposed terms would give conflicted petitioners control of management and majority shareholding, and would affect non-party shareholders, the compromise is not fit to be sanctioned or recorded. Case-Laws Companies Law Thu, 19 Jul 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=99738