Under Section 230(1) of the Companies Act, 2013, relevant to Compromises, Arrangements and Amalgamations, National Company Law Tribunal (NCLT) has ordered a meeting of creditors of X Ltd. (unlisted), on an application by

As per section 230(6) of the Companies Act, 2013, where, at a meeting held in pursuance of sub-section (1), majority of persons representing three-fourths in value of the creditors, or class of creditors or members or class of members, as the case may be, voting in person or by proxy or by postal ballot, agree to any compromise or arrangement and if such compromise or arrangement is sanctioned by the Tribunal by an order, the same shall be binding on the company, all the creditors, or class of creditors or members or class of members, as the case may be, or, in case of a company being wound up, on the liquidator, appointed under this Act or under the Insolvency and Bankruptcy Code, 2016, as the case may be, and the contributories of the company. Hence, points to be considered for deciding the validity of the decision in each case are- The number of the voters for the decision shall be more than 7 (majority). The value of the voters for the decision shall be equivalent or more than ₹ 75 crores. (3/4th value of the debts of the company towards creditors). The validity in case of - the proposed compromise cannot be implemented, as voting majority is not existing though the value of voters is 3/4th value of the debts.