https://www.taxtmi.com/caselaws?id=212622 Section 391(6) of the Companies Act, 1956 was treated as a discretionary power limited to staying civil or financial proceedings connected with the company's liabilities during consideration of a scheme of arrangement, and it was held not to extend to criminal prosecutions, including proceedings under section 138 of the Negotiable Instruments Act. The Court also found no basis for interim stay of the pending civil proceedings, because the applicant did not establish irreparable injury or a favourable balance of convenience, and the debt recovery proceedings had already been set aside in appeal. The general request for stay was therefore refused, while the scheme proceedings were allowed to continue. en-us Mon, 17 May 2010 00:00:00 +0530 Fri, 08 Feb 2013 11:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=212622 Section 391(6) of the Companies Act, 1956 was treated as a discretionary power limited to staying civil or financial proceedings connected with the company's liabilities during consideration of a scheme of arrangement, and it was held not to extend to criminal prosecutions, including proceedings under section 138 of the Negotiable Instruments Act. The Court also found no basis for interim stay of the pending civil proceedings, because the applicant did not establish irreparable injury or a favourable balance of convenience, and the debt recovery proceedings had already been set aside in appeal. The general request for stay was therefore refused, while the scheme proceedings were allowed to continue. Case-Laws Companies Law Mon, 17 May 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=212622