https://www.taxtmi.com/caselaws?id=111230 A composite scheme of arrangement, compromise, reconstruction and demerger under the Companies Act, 1956 was considered maintainable where the statutory procedure was followed, the relevant classes were properly constituted, the explanatory statement was adequate and the requisite majority approved the modified scheme. Objections based on the SARFAESI Act, pending DRT proceedings, alleged fraud, unfairness, capital reduction, valuation and share exchange ratio were rejected because the Court would not override informed commercial judgment unless the scheme was manifestly unfair, illegal or contrary to public policy. Statutory tax benefits under section 72A(4) of the Income-tax Act did not, by themselves, render the scheme objectionable. The scheme was sanctioned and made binding on shareholders and lenders. en-us Thu, 01 Mar 2007 00:00:00 +0530 Sat, 21 Apr 2012 11:27:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=111230 A composite scheme of arrangement, compromise, reconstruction and demerger under the Companies Act, 1956 was considered maintainable where the statutory procedure was followed, the relevant classes were properly constituted, the explanatory statement was adequate and the requisite majority approved the modified scheme. Objections based on the SARFAESI Act, pending DRT proceedings, alleged fraud, unfairness, capital reduction, valuation and share exchange ratio were rejected because the Court would not override informed commercial judgment unless the scheme was manifestly unfair, illegal or contrary to public policy. Statutory tax benefits under section 72A(4) of the Income-tax Act did not, by themselves, render the scheme objectionable. The scheme was sanctioned and made binding on shareholders and lenders. Case-Laws Companies Law Thu, 01 Mar 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=111230