Scrutiny of scheme of arrangement

*(2008) 3 Comp LJ 345 (AP): [2007] 80 SCL 496 (AP)*
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*Magnaquest Solutions (P) Ltd.*

while exercising powers under section 391(2), company court should examine whether proposed scheme of arrangement is violative of any provision of law and is not contrary to public policy, and for ascertaining real purpose underlying the scheme, the court if necessary can pierce veil of apparent corporate purpose underlying scheme and can judiciously x-ray same.


It should not be unfair / unconscionable or contrary to public policy.


Latest auditors report connotes the latest auditors report available or which should normally be available at the time of filing of the petition. --thats the one that should be filed.

Notice in scheme of arrangement

LG Electronics System India Ltd. 2003 42 SCL 554 (Delhi)

When under rule 75 a copy of the scheme is not provided, normally such a conduct by the transferor and transferee companies would immediately invite suspicion in the mind of the judge and may even lead to the rejection of the proposed scheme on this short ground.

Advocate Power of Attorney

2000 4 BomCR 740
1994 4 BomCR 538

In the same matter, an advocate cannot combine the roles of a counsel and power of attorney holder.

Power of Attorney Notarisation Process

Para 20.7 of 2009 MLJ 520

Proportionality

2001 2 SCC 386
2004 2 Scc 130
2004 2 scc 50
1987 4 scc 611
2002 104(1) bom LR 150

Exemption from personal appearance in cheque bounce case

2004 (4) Mah LJ 1115 - bhaskar sen

Bank guarantee

Separate contract and necessity of bank to be made a party:
74 comp cas 192
1990 (1) CLT 200
(1996) 1 scc 735
AIR 1996 SC 2268