K.M. THAKER, J.

1. BY this application under Section 391(6) of the Companies Act. 1956 (hereinafter referred to as 'the 1956 Act'), the applicant Company has prayed for below-mentioned relief:- (A) That pending the outcome of the meeting of the secured creditors of the Applicant Company, ordered to be convened on 4th February 2009 at 11.30 AM at Mumbai and pending the hearing and final disposal of the proceedings for sanction of the said scheme of compromise, SICOM Limited, one of the secured creditors of the Applicant Company be restrained from taking any legal proceedings against the Applicant Company, including, acting in any manner whatsoever u/S. 29 of the State Financial Corporations Act, 1951 including its notice dated 18th July 2008.... Re:- FACTS

2. THE relevant facts leading to this application are as follows:-

2.1. THE applicant is a Limited Company (hereinafter referred to as the Company) incorporated and registered as such under the 1956 Act. THE Company is engaged, inter alia, in the business of manufacturing and sale of high quality denim fabrics.

2.2. THE Company appears to have availed diverse types of loans from different Banks/Financial Institutions [FIsfor short] which include Axis Bank, EXIM Bank and SICOM Ltd. THE said Banks/Financial Institutions are banking Company or Financial Institution or Financial Corporation under Recovery of Debts Due to Banks and Financial Institution Act, 1993 [hereinafter referred to as 'RDB Act'] and/or under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [hereinafter referred to as SARFAESI Act or 2002 Act] and/or under State Financial Corporations Act, 1951 [hereinafter referred to as SFC Act or 1951 Act]. For sake of convenience, the Banks or the Financial Institutions or Corporation are hereinafter referred to as Banks or FIs.

2.3 THE Company, for .the purpose of availing the facility of loans, created charge over various movable/ immovable assets by way of mortgage and/or hypothecation in favour of FIs. It is claimed that earlier mentioned 3 FIs have pari passu charge over the assets of the Company. After some time the Company faltered in repayment of dues to the said FIs.

2.4 It emerges from the record that one of the FIs, viz. SICOM issued a demand notice dated 18.7.2008 calling upon the Company to pay Rs. 1,61,74,750/- on or before 25.7.2008 failing which it would be compelled to take actions as may be available in law, including action u/S. 29 of SFC Act.

2.5 About 5 months after the notice, the Company moved an application being Company Application No. 648/2008 under Section 391(1) of 1956 Act. It is declared in the pleadings that the said application was filed on or around 24.12.2008 with following prayer(s):-

(A) that a meeting of the secured creditors be convened at Mumbai (where all the secured creditors of the Applicant Company are situated) or at the registered office of Company or at such other place as this Hon'ble Court directs, for the purpose of considering and if thought fit, approving, with or without modification, a scheme of compromise proposed to be made between the Applicant Company and its secured creditors as stated in the Scheme.

(B) that directions may be given as to the method of convening, holding and conducting the said meeting and as to the notices and advertisements to be issued in that behalf.

2.6 It emerges that in the background of defaults in making repayments and maintaining the payment of schedule, the Company had contrived a scheme of restructuring debts [hereinafter referred to as the Scheme] and on that ground it preferred the aforesaid application with a prayer for direction to convene the meeting of secured creditors

2.7 An order dated 26.12.2008 was passed in the said Application No. 648 of 2008 directing to convene and hold a meeting of Secured Creditors on 4.2.2009 for considering the proposed arrangement/Scheme.

2.8 After the said order dated 26.12.2008, the Company, on o