https://www.taxtmi.com/caselaws?id=99791 At the threshold stage under section 391(1) of the Companies Act, 1956, the Court may decline to direct convening of creditors' meetings where the proposed compromise lacks bona fides, is unworkable, or is contrary to public interest. The Court must be prima facie satisfied that the company is qualified to seek the scheme and that the proposal is fit to be placed before creditors. A scheme depending on uncertain licence arrangements and requiring secured creditors to waive substantial interest may be found non-viable and unfair. Section 391(6) does not authorise an injunction against a secured creditor's enforcement of mortgage or hypothecation rights by sale. en-us Tue, 03 Apr 1979 00:00:00 +0530 Mon, 30 Jan 2012 11:34:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=99791 At the threshold stage under section 391(1) of the Companies Act, 1956, the Court may decline to direct convening of creditors' meetings where the proposed compromise lacks bona fides, is unworkable, or is contrary to public interest. The Court must be prima facie satisfied that the company is qualified to seek the scheme and that the proposal is fit to be placed before creditors. A scheme depending on uncertain licence arrangements and requiring secured creditors to waive substantial interest may be found non-viable and unfair. Section 391(6) does not authorise an injunction against a secured creditor's enforcement of mortgage or hypothecation rights by sale. Case-Laws Companies Law Tue, 03 Apr 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=99791