https://www.taxtmi.com/caselaws?id=111251 A company court cannot sanction a compromise or arrangement under the Companies Act, 1956 in a manner that impairs a secured creditor's debt or pending recovery proceedings before the Debt Recovery Tribunal under the special recovery statute. The tribunal's jurisdiction over adjudication, execution and priorities is exclusive and overriding, so an arrangement cannot foreclose proceedings already lawfully pending there. At the same time, where the requisite majority of secured creditors approves the scheme, it may still be sanctioned with modification excluding the objecting secured creditor and preserving its recovery action unaffected. The scheme was therefore approved only for consenting creditors. en-us Thu, 29 Mar 2007 00:00:00 +0530 Sat, 21 Apr 2012 13:17:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=111251 A company court cannot sanction a compromise or arrangement under the Companies Act, 1956 in a manner that impairs a secured creditor's debt or pending recovery proceedings before the Debt Recovery Tribunal under the special recovery statute. The tribunal's jurisdiction over adjudication, execution and priorities is exclusive and overriding, so an arrangement cannot foreclose proceedings already lawfully pending there. At the same time, where the requisite majority of secured creditors approves the scheme, it may still be sanctioned with modification excluding the objecting secured creditor and preserving its recovery action unaffected. The scheme was therefore approved only for consenting creditors. Case-Laws Companies Law Thu, 29 Mar 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=111251