Forfeiture of debentures was unjustified when Co. had option to file civil suit for recovery of outstanding amount

COMPANY LAW : Since provisions of section 122 provide for specific performance of contract to subscribe for debentures and same can be enforced by a decree, action pertaining to allotment or forfeiture of debentures can be questioned before civil courts and, therefore, action of company in forfeiting right of debenture holder on ground of non-payment of instalment was unjustifiedCOMPANY LAW : Since provisions of section 122 provide for specific performance of contract to subscribe for debentures and same can be enforced by a decree, action pertaining to allotment or forfeiture of debentures can be questioned before civil courts and, therefore, action of company in forfeiting right of debenture holder on ground of non-payment of instalment was unjustifiedwww.taxmann.com Latest Case LawsRead More

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