RAGHUBAR DAYAL Vs. BANK OF UPPER INDIA, LTD

JUDGEMENT

(1.) If this was a difficult case their Lordships would take time before formulating their report.

(2.) But the case appears to them to be one of no difficulty. Section 153 of the Indian Companies Act provides that- Where a compromise or arrangement is proposed between a company and its creditors, or any class of them, or between the company and its members or any class of them, the Court may, on the application in a summary way of the company, or of any creditor or member of the company, or, in the case of a company being wound up, of the liquidator, order a meeting of the creditors, or class of creditors, or of the members of the company, or class of members, us the case may be, to be called, held, and conducted in such a manner as the Court directs.

(3.) Then by the second part of the section:- If a majority in number representing three-fourths in value of the creditors, or class of creditors, or members or class of members, as the case may be, present either in person or by proxy at the meeting;, agree to any compromise or arrangement, the compromise or arrangement shall, if sanctioned by the Court, be binding on all the creditors, or the class of creditors, or on all the members, or class of members, as the case may be, and also on the company, or, in the ease of a company in the course of being wound up, on the liquidator and contributories of the company.