1919 (1) TMI 1

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....lating their report. 2. But the case appears to them to be one of no difficulty. Section 153 of the Indian Companies Act provides that Where a compromise or arrangement is proposed between a company and its creditors, or any class of them, or between the company and its members or any class of them, the Court may, on the application in a summary way of the company, or of any creditor or member ....

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....n the ease of a company in the course of being wound up, on the liquidator and contributories of the company. 4. In this case the Bank of Upper India closed its doors. The appellant was a customer of the bank who had a fixed deposit with it, which became repayable by the bank on the 4th November, 1914. Before that day, on the 8th August, the bank had suspended payment. The appellant, on the 19t....

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....#39;s decree on the 19th April was granted to him before the order confirming the resolution, but after the meeting at which the resolution and the scheme to which it related had boon agreed on. 6. The question is whether under Section 152 (which is a section in familiar language, practically identical with the corresponding section of the English Companies Act) the creditor was bound. The Cour....

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....y have been used. The agreement; becomes binding from the date when it is arrived at, subject to subsequent sanction by the Court. If that sanction be refused, the agreement is without effect. But it is not the case that the agreement is to take effect from the date of sanction. It takes effect from the date when it is made. Such is our interpretation of the words of the section. 7. When you lo....