HC disapproves scheme of arrangement which was designed to avoid repayment of creditors

HIGH COURT OF ANDHRA PRADESH Model Financial Corpn. Ltd. versus A.P. Mahesh Co-operative Urban Bank Ltd. Ramesh Ranganathan, J. C.P. Nos. 83 & 84 of 2002 C.A. Nos. 182 & 183 of 2002, 1218 of 2007 & 221 of 2009 NOVEMBER  2, 2012 JUDGMENT 1. C. P. No. 83 of 2012 is filed by Model Financial Corporation Ltd. (hereinafter called the “transferor company”), and C. P. No. 84 of 2012 is filed by M/s. Model Chit Corporation Ltd. (hereinafter called “the transferee company”), seeking sanction of this court, under sections 391 to 394 of the Companies A...