https://www.taxtmi.com/caselaws?id=111022 Sanction of a scheme of arrangement under section 391(2) is not automatic merely because the requisite majority approves it; the company court must be satisfied that the proposal is bona fide, feasible, workable and capable of genuine revival. Where the company had been inactive for years, lacked operative assets and route permits, had not settled creditor dues, and the materials suggested the scheme was aimed at retaining tenanted premises rather than reviving the business, rejection was justified. The interests of secured and other creditors could not be ignored in the winding-up context, and the refusal to approve the scheme was upheld. en-us Fri, 30 Sep 2005 00:00:00 +0530 Thu, 19 Apr 2012 17:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=111022 Sanction of a scheme of arrangement under section 391(2) is not automatic merely because the requisite majority approves it; the company court must be satisfied that the proposal is bona fide, feasible, workable and capable of genuine revival. Where the company had been inactive for years, lacked operative assets and route permits, had not settled creditor dues, and the materials suggested the scheme was aimed at retaining tenanted premises rather than reviving the business, rejection was justified. The interests of secured and other creditors could not be ignored in the winding-up context, and the refusal to approve the scheme was upheld. Case-Laws Companies Law Fri, 30 Sep 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=111022