https://www.taxtmi.com/caselaws?id=103163 In proceedings under section 391(1) of the Companies Act, 1956, the HC held that the court is not bound to direct meetings of creditors and members; it has discretion to refuse directions where the proposed compromise is not prima facie genuine or fit for consideration. The proposed scheme was found unworkable because it disclosed no reliable source of funds to meet admitted liabilities, faced opposition from the secured creditor, and lacked material showing feasibility or bona fides. On that basis, the court rejected the application for directions and did not permit the scheme to proceed. en-us Tue, 15 Dec 1992 00:00:00 +0530 Tue, 21 Feb 2012 11:53:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=103163 In proceedings under section 391(1) of the Companies Act, 1956, the HC held that the court is not bound to direct meetings of creditors and members; it has discretion to refuse directions where the proposed compromise is not prima facie genuine or fit for consideration. The proposed scheme was found unworkable because it disclosed no reliable source of funds to meet admitted liabilities, faced opposition from the secured creditor, and lacked material showing feasibility or bona fides. On that basis, the court rejected the application for directions and did not permit the scheme to proceed. Case-Laws Companies Law Tue, 15 Dec 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=103163