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2008 (4) TMI 509 - HIGH COURT OF MADRASCompromise and arrangement - whether vital aspect relating to the affairs of the company, which was under the scrutiny of the RBI had not been disclosed, even though under section 391(2), the company is required to disclose all the relevant factors? Held that:- Non-disclosure of the action taken and initiated by the RBI as apparent from the letter dated January 18, 2005, amounted to non-disclosure of relevant facts required to be disclosed under section 391(1) read with section 393(1) of the Act, thus vitiating the bona fides of the company and thereby violating the procedural safeguards. Unable to accept such ingenious submission made by learned counsel for the company and others supporting the scheme. Chapter III-B, which was inserted by way of amendment, has been obviously incorporated with a view to protect the depositors and to avoid exploitation by non-banking financial institutions. Section 45Q itself makes it very clear that the provisions of the Chapter III-B shall have effect notwithstanding anything inconsistent therewith in any other law. The Companies Act as well as the RBI Act are Central Acts. Chapter III-B, which was inserted by Act 55 of 1963 with effect from December 1, 1964, is obviously a later legislative provision.
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