https://www.taxtmi.com/caselaws?id=458769 Section 391(6) of the Companies Act, 1956 is confined to civil proceedings with a pecuniary nexus to the proposed compromise or arrangement, so it cannot be used to stay criminal prosecutions, including complaints under section 138 of the Negotiable Instruments Act. The benefit of a sanctioned scheme also does not extend to directors or guarantors who are not parties to it, because their independent liabilities are not released merely by the company's compromise. Where winding-up petitions remain pending, even if further steps are barred by section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985, rule 71 requires notice before an ex parte stay application is entertained. en-us Thu, 04 Nov 2004 00:00:00 +0530 Fri, 15 Nov 2024 15:41:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=458769 Section 391(6) of the Companies Act, 1956 is confined to civil proceedings with a pecuniary nexus to the proposed compromise or arrangement, so it cannot be used to stay criminal prosecutions, including complaints under section 138 of the Negotiable Instruments Act. The benefit of a sanctioned scheme also does not extend to directors or guarantors who are not parties to it, because their independent liabilities are not released merely by the company's compromise. Where winding-up petitions remain pending, even if further steps are barred by section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985, rule 71 requires notice before an ex parte stay application is entertained. Case-Laws Companies Law Thu, 04 Nov 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=458769