Bare ActsCompanies Act, 1956

Section 517

Arrangement when binding on company and creditors

Amendment status not verified — confirm the current text below against the official source.

(1) Any arrangement entered into between a company about to be, or in the course of being, wound-up and its creditors shall, subject to the right of appeal under this section, be binding on the company and on the creditors if it is sanctioned by a special resolution of the company and acceded to by three-fourths in number and value of the creditors. (2) Any creditor or contributory may, within three weeks from the completion of the arrangement, appeal to the [Tribunal] against it and the [Tribunal] may thereupon, as it thinks just, amend, vary, confirm or set aside the arrangement.

Section 517 – Companies Act, 1956 | DailyLaw.ai