ORDER

1. The subject-matter of appeal relates to a decision of the High Court disposing of an appeal (CP No. 41 of 1990) filed by the appellant from the order passed by a Single Judge on an application filed by Respondent 1 (hereinafter referred to as "the Company") under the Companies Act, 1956.

2. The Company had been granted a lease by the appellant for felling trees and for removing and selling the same from a specified area on 4-31961. The lease was granted subject inter alia to the Company making payment of royalty in respect of the sold trees at fixed percentage to the appellant. The initial period of the lease was subsequently extended.

According to the appellant the Company had failed to make payment of royalty in terms of the lease agreement and a large amount of money amounting to over Rs 39,56,407 was payable by the Company to the appellant. The Company was admittedly in financial difficulties and had a large number of creditors who had initiated proceedings against it during the pendency of the lease period. Without going into the facts in greater detail it is sufficient for the purpose of this appeal, to record that an arrangement was entered into between the Conservato