TMI Blog1947 (3) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... asion, before giving directions for advertisements and fixing a date for the hearing of the application, I directed the applicant to give notice to the company so that I could give directions for advertisements after hearing the views of the company. A notice was accordingly given to the company, and an affidavit affirmed by one Mahomed Husain Khan, said to be the accountant of the company, was filed in opposition to the application. The matter came up before me on the 15th January, 1947, and after hearing the company I directed advertisements to be issued for the hearing of the application. Those directions have been carried out, and the application has now come up before me for final hearing. No other creditor has appeared before me, eith ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... depositor should be deemed to be a creditor for the amount shown to his credit up to the 31st December, 1932, in the books of the company, with such interest accruing thereon not exceeding 4 per cent, per annum, as might be decided to be paid by the depositors themselves at the meeting to be held annually before the end of January for the purpose of deciding the same. On the 31st December, 1932, the amount due to the petitioner was Rs. 16,218-8 in deposit account. Since the scheme was sanctioned the company has paid Rs. 151-10-9 on account of interest. At present, the amount due to the petitioner is Rs. 16,066-13-3 for principal and Rs. 1,407-8-6 on account of interest which has accrued due since the sanctioning of the scheme ; in other w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ared or submitted to him during the audit, and that, therefore, he could not verify the correctness of the amount shown in the balance sheet under heads "Loans," outstanding interest on loans, law costs and deposits with other companies and landed properties. In short, since 1939, the company appears to me to have been run only for the benefit of its employees, the creditors not having received any sum since that year. Mr. De, appearing on behalf of the company, has strenuously maintained that no application lies for setting aside a scheme once it is sanctioned by the Court. He referred me to certain observations of Lort-Williams, J., in the case of In re, Mymensingh Loan Office Ltd. [1936] 41 CWN 599 and also to the observations of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gent or prospective creditors, under section 166, and such petition may be presented on any of the grounds mentioned in paragraph 162 of the Indian Companies Act. I do not think that the position of a creditor who is bound by a scheme is worse than a contingent or prospective creditor. As I have said, it may be that such a creditor will not be entitled to present a winding-up petition on the ground that the company is unable to pay its debts or has failed to pay after having been served with a statutory notice under section 163 of the Act, but I do not see any reason why such a creditor should not be entitled to present a winding-up petition if default is made in filing the statutory report or in holding the statutory meeting or if there be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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