Law:

Section: 284,285,286,287

Companies Ordinance (XLVII of 1984)--- ----Ss. 284, 285, 286 & 287---Compromises, arrangements and reconstruction of companies---Power of Court to enforce compromises and arrangements---Provisions for facilitating reconstruction and amalgamation of companies---Nature of jurisdiction of Court under S. 284 of the Companies Ordinance, 1984--- Scheme proposing to wind-up company to pay liabilities to creditors---Consent of creditors to scheme of arrangement---Objections by creditors to scheme of arrangement--- Secured and unsecured creditors--- Guarantors' liabilities towards creditors objecting to scheme of arrangement---Scope---Applicant company and consenting creditors of company, sought sanction to scheme of arrangement which was a compromise between the company and such creditors, to clear outstanding liabilities---Objector Bank filed objections to said scheme of arrangement inter alia on ground that it could not bind creditors who did consent to the same---Held, that interest of secured creditors and that of unsecured creditors may be common but only to the extent of sale of mortgaged, pledged and/or hypothecated assets and for distribution of the same on proportionate basis but by entering into scheme of arrangement, statutory rights and remedies of unsecured creditors did not cease at the time of approval for such scheme---Such statutory rights may be of civil or criminal nature and consenting creditors may have been compounding all their rights by sale of assets but consent of some creditors could not curtail legal remedies of any other class of creditors or of the same class which was pursuing civil and criminal remedies against guarantors and sureties, which liabilities of guarantors/sureties could not be wiped out by virtue of compromise between company and consenting creditors---Where scheme of arrangement sought to take away statutory rights of non-consenting creditors of the same class or any other class, majority view of consenting creditors could prevail over minority and release guarantors only in case of variance of terms of repayment and in absence of the same, it did not interfere in any other statutory rights---High Court declined to…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492