https://www.taxtmi.com/caselaws?id=111037 An NBFC proceeded against under section 45MC of the Reserve Bank of India Act, 1934 cannot ordinarily avoid winding up by using sections 391(1) and 393 of the Companies Act, 1956 to shift into a different business line, because that would defeat the regulatory object of Chapter III-B and permit indirectly what the statute forbids directly. The only possible narrow exception noted is where the sole ground is inability to pay debts and a genuinely protective scheme is shown. The court must also be satisfied prima facie that any proposed reconstruction or amalgamation is bona fide, complete and workable before directing meetings of shareholders and creditors; an incomplete, uncertain or commercially unrealistic scheme need not be allowed to proceed. en-us Fri, 25 Nov 2005 00:00:00 +0530 Thu, 19 Apr 2012 18:32:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=111037 An NBFC proceeded against under section 45MC of the Reserve Bank of India Act, 1934 cannot ordinarily avoid winding up by using sections 391(1) and 393 of the Companies Act, 1956 to shift into a different business line, because that would defeat the regulatory object of Chapter III-B and permit indirectly what the statute forbids directly. The only possible narrow exception noted is where the sole ground is inability to pay debts and a genuinely protective scheme is shown. The court must also be satisfied prima facie that any proposed reconstruction or amalgamation is bona fide, complete and workable before directing meetings of shareholders and creditors; an incomplete, uncertain or commercially unrealistic scheme need not be allowed to proceed. Case-Laws Companies Law Fri, 25 Nov 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=111037