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The Act and the relevant rules pertaining to amalgamation are to be followed scrupulously.The provisions of the Act also deal with compromise or arrangement within or without amalgamation or merger.

The court can order an amalgamation of the Indian undertaking of a foreign company with an Indian Company.

The court must be satisfied that statutory majority are acting in bona fide manner and that any intelligent and honest man belonged to the class would approve the scheme.

CREDITOR’S RESOLUTIION – NECESSARY The creditors have to pass requisite resolution for a scheme on arrangement or compromise with them.

COMPROMISE AND ARRANGEMENT ‘Compromise’ is an expression which implies the existence of a dispute such as relating to rights, which it seeks to settle.

‘Arrangement’ is a term of very wide import, and its meaning is not to be limited to something analogous to a compromise to a compromise.




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