Rainbow Denim Ltd. vs Rama Petrochemicals Ltd.

The Supreme Court held that the order of the learned company judge must be set aside, allowing the appellant-company to seek directions for calling meetings of shareholders and creditors to consider and approve the scheme. The Court emphasized that the appropriate time for the company judge to evaluate the scheme is after shareholder and creditor approval. Consequently, the appeal was disposed of without costs, indicating no fresh application for approval is necessary at this stage.