https://www.taxtmi.com/caselaws?id=199675 The court sanctioned the modified scheme of arrangement under Section 391 of the Indian Companies Act, 1956, approving the reorganization of the company's share capital to stabilize its financial position. The scheme, passed by the requisite majority, aimed to raise further capital through issuing new ordinary shares. Allegations of mala fide intentions behind the scheme were dismissed due to lack of evidence. The court clarified that compliance with Sections 293(d) and 81(1)(a) was met, allowing the company to proceed with the scheme. Conditions were imposed to ensure creditor payments and potential management changes if dividends were not paid by a specified date. en-us Fri, 13 Jun 1958 00:00:00 +0530 Fri, 09 Mar 2018 12:12:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=199675 The court sanctioned the modified scheme of arrangement under Section 391 of the Indian Companies Act, 1956, approving the reorganization of the company's share capital to stabilize its financial position. The scheme, passed by the requisite majority, aimed to raise further capital through issuing new ordinary shares. Allegations of mala fide intentions behind the scheme were dismissed due to lack of evidence. The court clarified that compliance with Sections 293(d) and 81(1)(a) was met, allowing the company to proceed with the scheme. Conditions were imposed to ensure creditor payments and potential management changes if dividends were not paid by a specified date. Case-Laws Indian Laws Fri, 13 Jun 1958 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=199675