https://www.taxtmi.com/caselaws?id=460211 Sanction of a scheme of arrangement under Sections 391 to 394 of the Companies Act, 1956 is supervisory, but the court must be satisfied that mandatory disclosures are made, affected creditors are properly consulted, and the proposal is fair, just, reasonable and in public interest. The scheme was not approved because secured and unsecured creditors other than bondholders were not consulted despite being affected, up-to-date financial and auditor materials were not placed before the court, and the explanatory statement to bondholders did not fairly disclose the erosion of principal, deferred payment and frozen interest. The arrangement was treated as failing the statutory and equitable safeguards for approval. en-us Fri, 02 Nov 2012 00:00:00 +0530 Wed, 15 Jan 2025 18:13:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=460211 Sanction of a scheme of arrangement under Sections 391 to 394 of the Companies Act, 1956 is supervisory, but the court must be satisfied that mandatory disclosures are made, affected creditors are properly consulted, and the proposal is fair, just, reasonable and in public interest. The scheme was not approved because secured and unsecured creditors other than bondholders were not consulted despite being affected, up-to-date financial and auditor materials were not placed before the court, and the explanatory statement to bondholders did not fairly disclose the erosion of principal, deferred payment and frozen interest. The arrangement was treated as failing the statutory and equitable safeguards for approval. Case-Laws Companies Law Fri, 02 Nov 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=460211