https://www.taxtmi.com/caselaws?id=101055 A scheme of arrangement under section 391 of the Companies Act, 1956 was not sanctioned because the petition was filed beyond the period prescribed by rule 79 of the Companies (Court) Rules, 1959 and the delay was not satisfactorily explained. The company also failed to disclose all material facts and its latest financial position as required by the proviso to section 391(2). On the merits, the arrangement was found to be designed to defeat genuine third-party creditors, with most liabilities owed to directors, shareholders or their relatives, indicating a collusive and mala fide attempt to avoid execution of decrees. The petition was rejected. en-us Mon, 03 Oct 1983 00:00:00 +0530 Wed, 08 Feb 2012 13:54:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=101055 A scheme of arrangement under section 391 of the Companies Act, 1956 was not sanctioned because the petition was filed beyond the period prescribed by rule 79 of the Companies (Court) Rules, 1959 and the delay was not satisfactorily explained. The company also failed to disclose all material facts and its latest financial position as required by the proviso to section 391(2). On the merits, the arrangement was found to be designed to defeat genuine third-party creditors, with most liabilities owed to directors, shareholders or their relatives, indicating a collusive and mala fide attempt to avoid execution of decrees. The petition was rejected. Case-Laws Companies Law Mon, 03 Oct 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=101055