Forfeiture of debentures was unjustified when Co. had option to file civil suit for recovery of outstanding amount

COMPANY LAW : Since provisions of section 122 provide for specific performance of contract to subscribe for debentures and same can be enforced by a decree, action pertaining to allotment or forfeiture of debentures can be questioned before civil courts and, therefore, action of company in forfeiting right of debenture holder on ground of non-payment of instalment was unjustified

from www.taxmann.com Latest Case Laws https://ift.tt/3xYeJ2l