BANERJEE, J. :- This is an appeal from an order made on June 15, 1950, by Bachawat, J., refusing to sanction a scheme. The Company in question is the Bengal Bank Ltd. which was incorporated in 1926 under the Indian Companies Act. The petition under S. 153 was first presented to this Court on or about December 9, 1949, on which day preliminary directions under that section were given.

2. The Bank has twenty branches. Five of the branches are in Pakistan and the remaining fifteen are within the State of West Bengal. The authorised capital of the Company is Rs. 25,00,000/-. The paid up capital is Rs. 11,70,000/-. It carries on business as a Bank in India as well as in Pakistan. Its registered office and principal place of business is in India. The majority of the depositors are within the Union of India. Notice of the application has not been given to the creditors in Pakistan.

3. Section 153 of the Indian Companies Act deals with the right of Companies to enter into a compromise or arrangement, (a) between itself and its creditors or any class of them, or (b) between itself and its members or any class of them. The procedure is as follows. First of all an application has to be