30/2016 Judicial Companies Misc. Gulshan Weaving Mills Limited & others (Applicant) V/S OTHERS (Respondent)
Sindh High Court
Bench: Hon'ble Chief Justice Mr. Justice Muhammad Shafi Siddiqui(Author)
Order Date: 03-APR-17
This Scheme of Arrangement although is silent as to suretys liability but it was argued to propose and suggest in a manner which tend to take away the statutory rights of non-consenting creditors of the same class or of any other class of creditors. There are of course contractual rights and statutory rights which members of the same class of creditors may barter for any consideration but the consent of the majority of one class of creditors cannot sweep the statutory or legal rights available to them under the law unless the variance is established. The majority view could prevail over minority and releases the guarantors only in case of variance in terms of repayment and in its absence it does not interfere any other statutory rights. Such sanction could only be deemed to be to the exclusion of objectors or non-consenting creditors who merely seeks to enforce statutory rights available to them under the law. The principle of Section 133 of the Contract Act in its strict sense would not apply to a case of Scheme of Arrangement under the present circumstances of the case. --It is perhaps this common interest of consenting creditors which distinguishes the objector from rest of the secured creditors and since there is no commonality of interest between the objector and the consenting secured creditors the effect of this Scheme of Arrangement would not bind the objector.Full judgment text for this case is not yet available on Pakistan Law Reports. Check the official Sindh High Court case law portal for the complete order.
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