https://www.taxtmi.com/caselaws?id=109313 A stay under section 391(6) of the Companies Act, 1956 is discretionary equitable relief and depends on full, fair and truthful disclosure, together with bona fide conduct by the applicant. Where the stay was obtained ex parte without notice to secured creditors, on a materially inaccurate statement, and without producing all relevant material, the Court treated the lack of bona fides as decisive and declined to restrain creditors, banks, and debt recovery proceedings. The earlier ex parte stay was therefore recalled, and creditors were left free to pursue their remedies. en-us Wed, 17 Dec 2003 00:00:00 +0530 Sat, 07 Apr 2012 18:08:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=109313 A stay under section 391(6) of the Companies Act, 1956 is discretionary equitable relief and depends on full, fair and truthful disclosure, together with bona fide conduct by the applicant. Where the stay was obtained ex parte without notice to secured creditors, on a materially inaccurate statement, and without producing all relevant material, the Court treated the lack of bona fides as decisive and declined to restrain creditors, banks, and debt recovery proceedings. The earlier ex parte stay was therefore recalled, and creditors were left free to pursue their remedies. Case-Laws Companies Law Wed, 17 Dec 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=109313