Ray, J. - (1.) This appeal is from the order of P.B. Mukharji J., by which a scheme of arrangement referred to in the order dated 3rd May, 1967, has been sanctioned.
(2.) The petitioner, Rivers Steam Navigation Company Limited (hereinafter referred to as the company), made an application for an order that compromise or arrangement be sanctioned by this court so as to be binding on all the members, secured creditors and unsecured creditors of the company and for further orders that all properties and assets of the company be transferred and vest in the new company, viz., Central Inland Water Transport Corporation Limited, free from the mortgages and charges in favour of the Chartered Bank and the liabilities of the company in favour of the State Bank of India and Government of India, be also transferred to and become the liabilities of the new company, Central Inland Water Transport Corporation Limited, and for other consequential reliefs.
(3.) The company was incorporated in England on or about 10th July, 1914. The objects of the company were, inter alia, the conveyance of passengers, merchandise and goods and treasure in steamers, boats, barges or other vessels to and from such places in the East Indies or elsewhere as the company may, from time to time, determine. The company commenced the business of river transport between Calcutta and Assam. Since the year 1965, the Government of India in view of the importance of the business of the company, acquired by purchase various shares in the company. The Government of India came to possess 5,00,000 equity shares, of which 29,660 are fully paid up and 4,70,340 are partly paid up, to the extent of 15 shillings per share. The company owned a fleet of 59 steamers, 19 tugs, 16 launches, 108 fiats and 38 barges. The company also employed a large number of staff and workmen both in West Bengal and Assam. It is also alleged in the petition that the company has been compelled to close down its main business for which the Government of India acquired the controlling interest. After the termination of hostilities with Pakistan, it was thought that resumption of service through East Pakistan might be possible. The company continued with large recurring financial help from the Government. The Government of India, from time to time, lent and advanced large sums of money, which comprised a sum of Rs. 30 lakhs in the month of December, 1958, and a further sum of money amounting to Rs. 1 crore in the year 1961 ; a farther sum of Rs. 90 lakhs in the month of August, 1966. The Chartered Bank claimed to be a creditor of the company to the extent of Rs. 1.6 crores and filed a suit against the company. The State Bank also claimed to be a creditor of the company and filed a suit in this court for the recovery of Rs. 1.5 crores.;