Court : Andhra Pradesh
Decided on : Nov-22-2005
Reported in : 2006(1)ALT589; 7SCL548(AP)
..... to certain creditors excluding uti. on that ground the scheme entails rejection. the uti constitutes a different class of secured creditors since it is a debenture holder as per section 117c of the companies act. therefore, the petitioner company cannot hold a single meeting of all the creditors since uti constitutes a different class among the secured creditors. the uti granted earlier a reschedule ..... , however, been not pressed later because of the clear case of the petitioner company.12. point no 1: obviously unlike the other secured creditors uti is a debenture holder. section 117c of the companies act mandates that where a company issues debentures, it shall create a debenture redemption reserve for the redemption of such debentures to which adequate amounts shall be credited from out of its profits every ..... to know whether there are any classes amongst the secured creditors. as discussed hereinabove, merely because section 117c of the companies act mandates a reserve to be created and funds are to be deposited in that reserve for redemption of the debentures, the debentures holder will not constitute as a separate class from among the secured creditors. the debts of the other secured creditors .....Tag this Judgment!