https://www.taxtmi.com/caselaws?id=100156 In a compromise or arrangement under the Companies Act, 1956, the High Court may, at the sanction stage and under its supervisory powers, substitute a new sponsor for the original sponsor if the basic bargain remains unchanged and the modification makes the scheme workable. The substitution of NDDB for TIL was held permissible because the sponsor was not part of the core compromise, and the modified arrangement better served creditors, workers, shareholders, and the revival of the unit. The court also held that sanctioning the revised scheme was not an indirect approval of an earlier rejected proposal, and that shareholders were not unlawfully compelled to sell their shares because the arrangement contemplated agreed transfer on improved consideration. en-us Wed, 19 Aug 1981 00:00:00 +0530 Tue, 31 Jan 2012 13:36:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=100156 In a compromise or arrangement under the Companies Act, 1956, the High Court may, at the sanction stage and under its supervisory powers, substitute a new sponsor for the original sponsor if the basic bargain remains unchanged and the modification makes the scheme workable. The substitution of NDDB for TIL was held permissible because the sponsor was not part of the core compromise, and the modified arrangement better served creditors, workers, shareholders, and the revival of the unit. The court also held that sanctioning the revised scheme was not an indirect approval of an earlier rejected proposal, and that shareholders were not unlawfully compelled to sell their shares because the arrangement contemplated agreed transfer on improved consideration. Case-Laws Companies Law Wed, 19 Aug 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=100156