https://www.taxtmi.com/caselaws?id=108301 A scheme of arrangement under section 391 of the Companies Act, 1956 is not invalidated merely because notice was not served on a creditor whose claim is disputed and subject to pending litigation, where the omission is not shown to be mala fide and the scheme is otherwise fair and protective of the class. Once the statutory meetings are properly convened and the requisite majority of shareholders and creditors approve the proposal after disclosure of material facts, the court accords deference to the commercial wisdom of the majority. The scheme of amalgamation was therefore sanctioned, with a typographical correction, and was made binding on the concerned stakeholders, with dissolution of the transferor-company on effectiveness. en-us Tue, 02 Sep 2003 00:00:00 +0530 Fri, 30 Mar 2012 18:20:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=108301 A scheme of arrangement under section 391 of the Companies Act, 1956 is not invalidated merely because notice was not served on a creditor whose claim is disputed and subject to pending litigation, where the omission is not shown to be mala fide and the scheme is otherwise fair and protective of the class. Once the statutory meetings are properly convened and the requisite majority of shareholders and creditors approve the proposal after disclosure of material facts, the court accords deference to the commercial wisdom of the majority. The scheme of amalgamation was therefore sanctioned, with a typographical correction, and was made binding on the concerned stakeholders, with dissolution of the transferor-company on effectiveness. Case-Laws Companies Law Tue, 02 Sep 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=108301