https://www.taxtmi.com/caselaws?id=103200 Section 392 of the Companies Act, 1956 gives the company court wide supervisory power to issue directions and modify a sanctioned scheme where implementation fails, and that power can extend to equitable relief such as interest in favour of unsecured creditors. A temporary moratorium under section 5 of the Karnataka Relief Undertakings (Special Provisions) Act, 1977 only suspends enforcement of liability; it does not extinguish the debt, which revives once the notification ends. On that basis, interest may be awarded for the period during which creditors were kept out of their money, and the direction to pay interest at 6 per cent per annum was upheld. en-us Wed, 10 Feb 1993 00:00:00 +0530 Tue, 21 Feb 2012 14:45:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=103200 Section 392 of the Companies Act, 1956 gives the company court wide supervisory power to issue directions and modify a sanctioned scheme where implementation fails, and that power can extend to equitable relief such as interest in favour of unsecured creditors. A temporary moratorium under section 5 of the Karnataka Relief Undertakings (Special Provisions) Act, 1977 only suspends enforcement of liability; it does not extinguish the debt, which revives once the notification ends. On that basis, interest may be awarded for the period during which creditors were kept out of their money, and the direction to pay interest at 6 per cent per annum was upheld. Case-Laws Companies Law Wed, 10 Feb 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=103200