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2007 (8) TMI 447 - SC - Companies LawWhether the compromise put forward under section 391 of the Companies Act could be accepted by the court without reference to the fact that it is a company in liquidation and without considering whether the compromise proposed as intending to take the company out of liquidation, contemplates the revival of the company and whether it puts forward a proposal for revival and whether such a proposal also satisfies the element of public interest and commercial morality, the elements required to be satisfied for the court to stop the winding up proceeding in terms of section 466 of the Act? Whether in the case of a company which had been ordered to be wound up, a compromise or arrangement made under section 391 of the Act could be accepted on the basis that the said arrangement has been approved by the relevant meeting of the creditors, members and so on? Whether the court was concerned with anything more than such a decision taken by the concerned members and creditors of the company? Held that:- Appeal allowed in favour of remand. This court do appreciate this aspect of the matter, having taken the view that the arrangement has to go back to the meeting of members, creditors, etc. of the company in terms of section 391 of the Act and once it is adopted or adopted with modifications with the requisite majority at the meeting, the arrangement would require a fresh scrutiny by the Company Court thereafter, we cannot avoid interfering with the decision of the Division Bench on the ground put forward by learned Senior Counsel of benefit to the workers.
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