St. Mary’s Finance Ltd., a company incorporated under the companies Act, (Nidhi Company), collected nearly Rs. 18 crores from thousands of depositers. When the money was not repaid, one of the creditors Sri. V. Sugandalal, filled CP 18/99 for winding up of the company. In the meantime the company filed MCA 6/99 under sec. 391(1) of the companies Act for accept the scheme of compromise. This court refused to accept the scheme proposed by the company it was totally against the interests of the depositors. Instead of passing an order of winding up, as it would cause hardship to the depositors, this court formulated a scheme for running the business without allowing to receive fresh deposits and appointed the provisional liquidator. Though the company challenged the above order by filling MFA 1250, 1265 and 1266 of 1999, all those appeals were dismissed. The company had diverted Rs. 7.67 crores to another sister company, M/s. St.Mary’s Properties Ltd., by unlawful means and violating the provisions of law and the standing orders of Reserve Bank of India. The scheme formulated by this court was being defeated by the company especially by its managing director Sri Bobby Vargh