Law:

Section:

(a) Companies Act (VII of 1913)------------S. 239 (2)-Creditor's meeting-Voting-Regard should be had to value of each creditor's debt-Creditor may vote either by person or proxy--­Rule 77 of Rules made by High Court under S. 246, Companies Act. Subsection (2) of section 239, Companies Act, specifically provides that in the case of creditors, regard shall be had to the value of each creditor's debt. In order, therefore, to determine the wishes of the creditors, it will not suffice to merely allow each creditor one vote. The amount due to each creditor will also have to be taken into consideration. The rules framed by the High Court by virtue of powers conferred by section 246 of the Companies Act, further provide in rule 77 that a creditor or a contributory may vote either by person or by proxy. Earnest v. Loma Gold Mines, Ltd. (1897 1 Chancery I) distinguished. The objection that no one except a creditor could act as a 'proxy at a creditor's meeting is not supported by any authority and is not borne out by rules framed by the High Court. Sovereign Life Assurance Co. v. Dodd (1892, 2 Queen's Bench Division 573) not applicable. (b) Companies Act (VII of 1913)------- -----S. 239-Creditor trans­ferring his claim to another person before meeting of creditors­Liquidator admitting claim of transferee as creditor though no entry could be made in Books which were in Court at the time--­Transferee may take part as creditor in creditors' meeting. Where a claim against the Bank was transferred to another person long before a creditors' meeting was due to take place and the claim of the transferee was admitted by the liquidastor the mere fact that in the books of the Bank, the transferee was not shown as a creditor in place of the transferor, the books of the Bank at the time being in Court, does not affect the question of the transferee's competency to take part as creditor, in a creditor's meeting. (c) Companies Act (VII of 1913)------ ------S. 246, Rules made by High Court, Rules 77 and 83-No specific direction given by Judge as to application of Rules 78 to 86 but Judge directing Form No. 35 of proxies to be used-Application of Rule 83 proviso -Liquidator acting as…

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