https://www.taxtmi.com/caselaws?id=199560 Under the Indian Companies Act, 1913, majority approval of a reconstruction scheme did not bind the Court; sanction still depended on independent judicial satisfaction that the class was properly represented, the proposal was bona fide, fair and reasonable, and an intelligent member could reasonably approve it. The scheme was refused because the company was hopelessly insolvent, the revival assumptions were commercially unrealistic, the arrangement appeared to protect delinquent management, and material facts about fraud and misfeasance proceedings were not disclosed. The sanction was set aside and winding-up was directed to continue. en-us Sat, 20 Aug 1966 00:00:00 +0530 Tue, 06 Mar 2018 17:47:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=199560 Under the Indian Companies Act, 1913, majority approval of a reconstruction scheme did not bind the Court; sanction still depended on independent judicial satisfaction that the class was properly represented, the proposal was bona fide, fair and reasonable, and an intelligent member could reasonably approve it. The scheme was refused because the company was hopelessly insolvent, the revival assumptions were commercially unrealistic, the arrangement appeared to protect delinquent management, and material facts about fraud and misfeasance proceedings were not disclosed. The sanction was set aside and winding-up was directed to continue. Case-Laws Companies Law Sat, 20 Aug 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=199560