DR VED MITRA Vs. GLOBE MOTORS LIMITED

JUDGEMENT

(1.) Further to the Scheme, which had been approved by the creditors and sanctioned by this Court on 31-5-1969 in the matter of Globe Motors Limited, the question, what further steps should be taken and directions, if any, given under Section 392(2) of the Companies Act, 1956 (hereinafter called the Act), has now arisen for consideration. It will be necessary to read Section 392(1) and (2) of the Act :

(2.) It will also be necessary to read Rules 86 and 87 of the Companies (Court) Rules, 1959, framed by the Supreme Court of India under powers conferred by sub-sections (1) and (2) of Section. 643 of the Act:

(3.) The Scheme dated 24-2-69 was sanctioned by Hardyal Hardy, J. (as he then was) on 31-5-1969. and modified to some extent on 3-2-1970 by S. N. Andley, J. (as he then was). The Scheme, itself provided that it may be approved by the Court in the form in which it was presented after being approved by the creditors and members with such modifications thereof or conditions as may be approved or imposed by the Court, a model which had been recommended by Palmer (Company Precedents, p. 844 Ed. 16th) even in the absence of a statutory provision corresponding to present Section 392 of the Indian Act. Clause 3 (Preliminary) provided as follows :