In Re: Namchand Panachand Shah
In Re: Namchand Panachand Shah (Cause No., 14/1927.) [1927] EACA 44 (1 January 1927)
The court held that, although sections 18 and 28 of the Bankruptcy Ordinance, 1925 appear to mandate refusal of approval for a scheme where the bankrupt has committed an offence, section 28 allows for exceptions where special reasons exist. In this case, the unanimous support of the creditors and the Official Receiver's lack of objection constitute special reasons. The court determined that the interests of the creditors should take precedence, and that the court is not legally bound to refuse approval solely because of the bankrupt's offence. The scheme was therefore approved as being in the…
Source excerpt
- Bankruptcy Scheme Approval
- Composition With Creditors
- Bankrupt Offences
- Court Discretion In Insolvency