https://www.taxtmi.com/caselaws?id=111395 A compromise scheme under section 391 of the Companies Act, 1956 was considered unsuitable where the company was already under BIFR rehabilitation proceedings under the Sick Industrial Companies framework. The Court treated its role as supervisory, but regarded the pending sickness reference, declaration of sickness, appointment of an operating agency, and lack of realistic revival prospects as factors militating against sanction. It also found the scheme oppressive and unreasonable for secured creditors, including dissenters, because the proposed sacrifice was too severe to satisfy the standard of fairness and equity required for class binding approval. en-us Fri, 01 Dec 2006 00:00:00 +0530 Mon, 23 Apr 2012 13:25:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=111395 A compromise scheme under section 391 of the Companies Act, 1956 was considered unsuitable where the company was already under BIFR rehabilitation proceedings under the Sick Industrial Companies framework. The Court treated its role as supervisory, but regarded the pending sickness reference, declaration of sickness, appointment of an operating agency, and lack of realistic revival prospects as factors militating against sanction. It also found the scheme oppressive and unreasonable for secured creditors, including dissenters, because the proposed sacrifice was too severe to satisfy the standard of fairness and equity required for class binding approval. Case-Laws Companies Law Fri, 01 Dec 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=111395