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Pending the appeal before the Division Bench, the present scheme has been preferred by Rajeev Mardia and Rasiklal Mardia (hereinafter referred to as "Mardia brothers") and initiated the present proceedings. It has been so declared that in view of the present proceedings, earlier scheme shall be abandoned and the Division Bench of this Court shall be accordingly informed about the same.

On 04.08.2008, Mardia brothers preferred Company Applications No.446, 447 and 448 of 2008. On 11.08.2008, the learned Company Judge after hearing the application, ordered for convening of the meeting of all classes of creditors and shareholders. However, the meetings were to be separately convened of the unsecured creditors, equity shareholders and secured creditors of the Company for consideration of the scheme. As per the applicants therein, who are appellants herein, notices of the meeting were sent individually to all unsecured creditors, equity shareholders and secured creditors as required by the order together with the scheme of arrangement with the explanatory statement as required under section 393 of the Act and form of proxy. The notice of the meeting was also advertised as directed by the said order in Indian Express English daily and Jansatta Loksatta Gujarati daily, both Ahmedabad edition. On 04.09.2008 and on 29.09.2008, the said meeting of unsecured creditors, equity shareholders, and secured creditors of the Company were duly convened and the report was submitted by the Chairman about the results of the meeting. The meeting of unsecured creditors was attended by 39 unsecured creditors in total together with others representing the claim of Rs.9,25,29,202.28. Out of 39 votes cast, one was found to be invalid and the remaining 38 unsecured creditors have voted in favour of the scheme. None of the unsecured creditors voted against the scheme. Thus, the Resolution approving the proposed scheme was approved unanimously by the unsecured creditors of the Company present and voted at the meeting. The meeting of the equity shareholders of the Company was attended by 27 equity shareholders of the Company entitled to Rs.16,92,60,230/- being the value of the 16926023 equity shares of Rs.10/- each. Out of 27 ballot cast, there were two held to be invalid and all the remaining equity shareholders voted in favour of the scheme. None of the equity shareholders voted against the scheme. Thus, the resolution approving the proposed scheme of arrangement was approved unanimously by the equity shareholders of the Company present and voting in the meeting. The meeting of the secured creditor was attended by 9 secured creditors claiming to the total dues of Rs.188,04,00,0000. All the 9 secured creditors present at the meeting participated in the meeting and voted in favour of the scheme. Thus, the resolution approving the proposed scheme of arrangement was approved unanimously by the secured creditors of the Company present and voting at the meeting. In the main Company Petition No.275/08 for sanction of the scheme, notice was given to the Central Government. The procedure prescribed under section 10(2) of the Companies Act (hereinafter referred to as "the Act") was declared as not required to be followed. The advertisement was also given in Loksatta Jansatta and India Express, both Ahmedabad edition on 28.10.2008.