A Pvt. Ltd. Co. issued in 2003 Secured Redeemable NCDs @ 11.50% interest for 15 months, interest payable at the interval of every 5 months. The said Co. did not pay a single rupee towards interest till date.
The Co. got the Schme of arrangement sanctioned by Bombay HC and sent consent forms to all investors for opting for Shares of the Co. which are not traded favourable on the bourses.
The investor went into litigation. Dist. Consu. Forum gave order that the investor should approach the Specila Committee appoint by the Bombay HC. On enquiry it was revealed no such committee formed by the Bombay HC. Aggrieved, the investor preferred appeal in the State Forum. The Opponent advocate pleads the scheme of arangement. The investor pleads that his demand notice was prior to the Co. went into litigation and hence the Scheme of Arrangment not binding.
Please give your valued opinion.