If the lenders of unsecured loans in case of a company are issued any other debt instrument say debentures or promissionery note(secured/unsecured) for full amount without any compromise/waiver of dues by the said lenders, will this be covered under "arrangement" under section 391 of CA 1956? will court sanction be necessary?
2 Replies
Nitin
(43 Points)
Replied 10 May 2007
As I have gathered, arrangement will be covered under court procedure u/s 39 ONLY if there is dissent and /or thee is loss or waiver or compromise on part of creditors. Otherwise with their full consent, it is a matter of agreement between parties and as there s no public interest involved, sec 391 of CA is not involved
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