https://www.taxtmi.com/caselaws?id=275774 A composite scheme of arrangement under Sections 391 to 394 of the Companies Act, 1956 may validly combine compromise with lenders, reconstruction of the demerged company and demerger of an undertaking, provided the scheme is procedurally compliant, fair and supported by the requisite statutory majority. Lender classes are determined by commonality of interest and treatment under the scheme, and an assignee may vote to the extent of the assigned rights; commercial wisdom of the majority prevails absent fraud, unfairness or lack of bona fides. Pending recovery proceedings, SARFAESI action, bank guarantee liabilities, share capital reduction and tax benefit objections did not vitiate the scheme, which was sanctioned and held binding on shareholders and lenders. en-us Thu, 01 Mar 2007 00:00:00 +0530 Thu, 14 Mar 2019 15:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=275774 A composite scheme of arrangement under Sections 391 to 394 of the Companies Act, 1956 may validly combine compromise with lenders, reconstruction of the demerged company and demerger of an undertaking, provided the scheme is procedurally compliant, fair and supported by the requisite statutory majority. Lender classes are determined by commonality of interest and treatment under the scheme, and an assignee may vote to the extent of the assigned rights; commercial wisdom of the majority prevails absent fraud, unfairness or lack of bona fides. Pending recovery proceedings, SARFAESI action, bank guarantee liabilities, share capital reduction and tax benefit objections did not vitiate the scheme, which was sanctioned and held binding on shareholders and lenders. Case-Laws Indian Laws Thu, 01 Mar 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=275774