https://www.taxtmi.com/caselaws?id=188288 The court found that the company violated loan agreement clauses by proceeding with a demerger/amalgamation scheme without secured creditors' prior consent. It rejected the company's argument that securities and charges would remain intact, noting adverse effects on banks' security positions. The court emphasized the necessity of protecting creditors' interests, highlighting the lack of notice and suppression of material facts. Despite allegations of lacking bona fides, the scheme's approval was deemed valid, subject to secured creditors' approval, to safeguard their interests and public interest. The court upheld the single judge's order, dismissing appeals. en-us Mon, 17 Aug 2009 00:00:00 +0530 Thu, 24 Nov 2016 12:28:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=188288 The court found that the company violated loan agreement clauses by proceeding with a demerger/amalgamation scheme without secured creditors' prior consent. It rejected the company's argument that securities and charges would remain intact, noting adverse effects on banks' security positions. The court emphasized the necessity of protecting creditors' interests, highlighting the lack of notice and suppression of material facts. Despite allegations of lacking bona fides, the scheme's approval was deemed valid, subject to secured creditors' approval, to safeguard their interests and public interest. The court upheld the single judge's order, dismissing appeals. Case-Laws Companies Law Mon, 17 Aug 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=188288