( 1 ) THIS petition is filed under Section 391 (2) of the Companies Act by the petitioner M/s. S. m. holding finance private limited, who is the petitioner in the matter of Mysore machinery manufacturers limited (in liquidation ).

( 2 ) THE object of the petition is to obtain sanction of the court to a compromise or arrangement whereby the debts of the company (in liquidation) i. e. , secured, preferential and unsecured and wages of labour are discharged. That apart, the shareholders of the company (in liquidation) will be repaid their share holding.

( 3 ) IT is averred that the company was incorporated under the then Mysore Companies Act 18 of 1938 on 23-9-1946 with a nominal capital of Rs. 100,00,000/- divided into 10,00,000 equity shares of Rs. 10/- each, of which 5,00,000 equity shares were issued and Rs. 10/- was paid up on each share issued.

( 4 ) THE objects for which the company was formed are set out in the company's memorandum of association. In brief they are: (i) to carry on the business of iron founders, mechanical engineers and manufacturers of agricultural implements and textile machinery, etc. , (ii) to carry on the business of structural engineering