TMI Blog1976 (3) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... und up. Some of the salient features of the scheme can be borne in mind at the outset. Firstly, the company was required to set apart and keep deposited with their attorneys, Messrs. Ambubhai and Diwanji, a sum equivalent of the 20 per cent. of the adjustable amount as well as the amount of interest within a period of three months from the date of the confirmation of the scheme which means that this amount was to be deposited by the 31st December, 1975. This amount was to be distributed among the unsecured creditors on pro rata basis within 14 days from the date of the deposit. Thus, the distribution of the amount among the unsecured creditors was to be completed by the middle of January, 1976. Secondly, the company agreed and assured to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmation was not given on or before 9th January, 1976, proceedings, inter alia , to wind up the company would be adopted. This also had no effect on the company. It is in these circumstances that the present judge's summons has been taken out by the applicant who is an unsecured creditor. He had given a loan of Rs. 6,000 for a period of six months which fell due for repayment on 11th August, 1972, with interest thereon at the rate of 15 per cent. per annum. He was a party to the scheme. Section 392 gives power to enforce compromises and arrangements. Sub-section (1) thereof invests the court with power to supervise the carrying out of the compromise or arrangement and to do other things for the proper working of the compromise or arrangem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is court on 36th September, 1975, cannot be worked out satisfactorily. The statements made in the affidavit remain uncontroverted. No argument was addressed in opposition by Mr. Chhatra-pati, the learned counsel for the company. However, Mr. Chhatrapati, while applying for adjournment, had stated that the company no longer finds it beneficial to carry on the export business. He also pointed out that the export business was beneficial because it resulted in drawback benefits given by the Government of India. The export orders with the Bulgarian Government have also come to an end. According to him, these developments took place in February/March, 1975. In these circumstances, the company desires to come forward with another scheme. We have n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs after the sanctioning of the scheme. What is done is to apply for an adjournment at the hearing of the present summons, so that the company can present another scheme. In these circumstances, I am of the view that the scheme cannot be worked out satisfactorily and it is just and equitable that the company be wound up. In the result, the summons are made absolute in terms of prayer ( a ), ( b ) and ( d ). Mr. Chhatrapati applies for costs of the company to come out of the assets of the company. The question of costs of the company is reserved till Wednesday, 10th March, 1976, to enable Mr. Ghhatrapati to make his submissions on this point. Shri Daulatram Gyanchand Jaisinghani, who is a creditor of the company to the extent of Rs. 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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