1935 (11) TMI 22

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.... in the Court of the Subordinate Judge of Jalpaiguri be stayed, so long as the scheme passed by this Court remains in force. Kalipada Banerji obtained a decree against the Jalpaiguri Banking and Trading Corporation Limited in July 1934. Various payments were made under that decree and on 17th December 1934 the Company applied under section 153, Companies Act, for the sanction of a scheme postponin....

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....atisfied and has attempted to nullify the orders of the Court by getting his decree transferred to the Court of the Subordinate Judge of Jalpaiguri and attempting to execute it against the assets of the Company. The main ground of opposition to the present application is that this Court has no jurisdiction to stay the proceedings in the Jalpaiguri Court because no such jurisdiction is vested in t....

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....ich the Court was called on to decide and says: 'I am far from saying that, if the meetings of the creditors and of the share-holders of the Company had been held, and if the proposed scheme of arrangement had been agreed to at those meetings and had been sanctioned by the Court, a stay of execution on a judgment obtained against the Company might not be ordered. It is however not necessary to de....

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....gree to a compromise or arrangement such, compromise or arrangement shall, if sanctioned by the Court, be binding on all such creditors, as also on the Company, or, in the case of a Company in the course of being wound up, on the liquidator and contributories of the Company. There is no doubt that section 153 contemplates the type of arrangement which has been come to in this case and not merely ....