| Case ID |
396d6583-32b7-4b32-961c-d11144318291 |
| Body |
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| Case Number |
I.C.A. No.9-L of 2003 in C.O.No.9 of 1998 |
| Decision Date |
Apr 06, 2005 |
| Hearing Date |
Apr 06, 2005 |
| Decision |
The Lahore High Court dismissed the intra-court appeal filed by the Anjuman Bahbood-e-Mutassirin Taj Company Limited against the rejection of their scheme for re-arrangement of the company. The court found that the meeting of creditors was conducted in a manner consistent with the guidelines provided by the court and that the scheme was unfair and unreasonable as it protected the rights of only one class of creditors while ignoring others. The appeal was dismissed in limine, emphasizing the necessity for fairness and consideration of all classes of creditors in any approved scheme. |
| Summary |
In the case of Anjuman Bahbood-e-Mutassirin Taj Company Limited vs. Registrar of Companies, the Lahore High Court addressed the intra-court appeal regarding the rejection of a proposed scheme for the re-arrangement of the company under the Companies Ordinance, 1984. The scheme aimed to transfer management to unsecured creditors, which was contested by the creditors who felt their rights were not adequately protected. The court scrutinized the meeting of creditors, highlighting that it was conducted under the appointed Chairman's guidance despite disruptions. The court ultimately dismissed the appeal, reiterating that schemes must consider all classes of creditors and maintain fairness. This decision underlines the importance of equitable treatment in corporate restructuring processes, especially in the context of creditor rights and interests, making it a significant reference in corporate law and governance. |
| Court |
Lahore High Court
|
| Entities Involved |
ANJUMAN BHAHBOODEMUTASSRIN TAJ COMPANY LIMITED,
REGISTRAR OF COMPANIES
|
| Judges |
MIAN HAMID FAROOQ, JUSTICE,
SYED HAMID ALI SHAH, JUSTICE
|
| Lawyers |
Khurram Saeed for Appellant,
Nemo for Respondents
|
| Petitioners |
ANJUMAN BHAHBOODEMUTASSRIN TAJ COMPANY LIMITED (REGISTERED) THROUGH PRESIDENT
|
| Respondents |
REGISTRAR OF COMPANIES AND ANOTHER
|
| Citations |
2005 SLD 758,
2005 CLD 1818
|
| Other Citations |
Empire Mining Company (1890) 44 Ch.D 402,
Barrow Haemalite Stell Company 39 Ch. D 582,
Griffith v. Paget 5 Ch. D 894,
Lipton Pakistan Ltd.'s case 1989 CLC 818
|
| Laws Involved |
Companies Ordinance, 1984
|
| Sections |
284,
285,
286,
287
|