1. This is an appeal by the Official Liquidators of a private limited company called "the Pioneer Dying House Limited" from the judgment of the learned District Judge Poona, sanctioning a scheme for reconstruction of the company. The facts leading to this appeal may be stated thus :

2. In 1941, a partnership firm by the name of "Pioneer Dying House" was formed for the purpose of dyeing, printing and processing Calico cloth. It consisted of three partners, D. B.Phatak, G. G. Ketkar and C. S. Phatak. On 1st of November, 1946, the firm was transformed into a Private Limited Company with an authorised capital of Rs. 5,00,000. D. B. Phatak was appointed a Managing Director of the company, while the two other partners. G G. Ketkar and C. S. Phatak were appointed Directors. On the 10th of November 1952, a petition for winding up of the company was filed by two creditors of the company. Harihar Ramkrishna Karandikar and Anandibai Karandikar. On the 2nd of February 1954, D. B. Phatak presented a scheme for reconstruction of the company, but the attempt to revive the company was given up as the scheme could not be worked out. On the 13th of August 1954, the learned District Judge, Poona, orde