15/2019 Judicial Companies Misc. GULISTAN SPINNING MILLS LIMITED & OTHERS (Applicant) V/S NA (Respondent)
Bench: Hon'ble Chief Justice Mr. Justice Muhammad Shafi Siddiqui(Author)
15/2019 Judicial Companies Misc. GULISTAN SPINNING MILLS LIMITED & OTHERS (Applicant) V/S NA (Respondent) Sindh High Court
Bench: Hon'ble Chief Justice Mr. Justice Muhammad Shafi Siddiqui(Author) Order Date: 30-OCT-23
Ss. 280, 281, 282, 283 & 285(8)---Scheme of Arrangement---Rights of parties---Petitioners sought approval of understandings and arrangements reached at between borrower and financers/creditors---Validity---High Court could not sit as Court of appeal over and above wisdom disclosed by borrower and creditors while agreeing to certain terms of repayment, provided it was within the frame of company law and within the contours of Financial Institutions (Recovery of Finances) Ordinance, 2001---To such extent High Court was bound to watch and commercial wisdom of participant of the Scheme could not be pierced by a Bench who might have its own opinion---Company jurisdiction of High Court in such matters was peripheral and supervisory and not of an appellate authority---By taking into confidence all stakeholders, a policy was devised to settle and pay liabilities of all secured creditors in a befitting manner---To achieve such goal, charged assets of petitioner company were put to sale through Assets Sale Committee consisting of representatives of banks---High Court set aside all objections and approved the Scheme of Arrangement---Petition was allowed, in circumstances