https://www.taxtmi.com/caselaws?id=295776 In insolvency proceedings, a private compromise between the petitioning creditor and the debtor could not be used to terminate the matter if it prejudiced the general body of creditors. The Madras HC noted that a petitioning creditor represents collective creditor interests, so an order dismissing the petition on compromise could amount to an abuse of process. The court could invoke its inherent power under Section 151 of the Code of Civil Procedure to review and set aside its earlier dismissal order, restore the insolvency petition, and permit substitution of another creditor, even where no formal application had been made. The challenge to restoration therefore failed. en-us Fri, 05 Oct 1962 00:00:00 +0530 Sat, 19 Jun 2021 15:28:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=295776 In insolvency proceedings, a private compromise between the petitioning creditor and the debtor could not be used to terminate the matter if it prejudiced the general body of creditors. The Madras HC noted that a petitioning creditor represents collective creditor interests, so an order dismissing the petition on compromise could amount to an abuse of process. The court could invoke its inherent power under Section 151 of the Code of Civil Procedure to review and set aside its earlier dismissal order, restore the insolvency petition, and permit substitution of another creditor, even where no formal application had been made. The challenge to restoration therefore failed. Case-Laws Indian Laws Fri, 05 Oct 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=295776