(1.) A conjoint effort to complete a half constructed multi- storey apartment complex in the heart of Ernakulam Town meets opposition from a few disgruntled. Nevertheless the effort backed by a compromise scheme is lauded and approved in the larger interest of the public who include depositors. Three company petitions were originally filed to wind up three companies by one of its erstwhile directors under sections 433(d) and (f) of the Companies Act, 1956 ('the Act') and the details are as follows:
(2.) The then chairman of the Builder Mr. M.G. John initially signed an agreement with the proposer on 30th October, 2007 in his personal capacity and ratified it on behalf of the company by a supplementary agreement dated 16th December, 2009. The salient features of the agreement are as follows:
(3.) Several of the public who deposited money in the name "Business India Group" had by then instituted many civil and criminal proceedings and even obtained orders of attachment of the 197 cents of land afore-described. The proposer felt that not only the creditors of the Builder but also the creditors of the "Business India Group" should be paid their dues to the extent possible before continuing the venture. A compromise agreement was accordingly entered into on 24th May, 2011 between (i) the Builder, (ii) Business India Commercial Hire Purchase India Ltd., (iii) Business India Shares & Insurance (P.) Ltd., and (iv) the proposer. Two other associations of creditors of the company by name Business India Investors Forum and Business India Settlement Trust also joined the compromise agreement. Accordingly CA No. 914 of 2010 filed on the basis of the agreement dated 16th February, 2009 was withdrawn and CA No. 340 of 2011 was filed proposing the new scheme of arrangement. The signatories to the compromise agreement concurred that 30 per cent of the super built up area available to the Builder could be utilised to settle the dues of the creditors of the "Business India Group". This was a conscious move since there was no company by name "Business India Group" even though deposit receipts had been so issued to the various investors across the country. Moreover neither the Business India Commercial Hire Purchase India Ltd. nor the Business India Shares & Insurance Pvt. Ltd. had any assets whatsoever to be proceeded against by the depositors.