Companies Act, 1956, Section 391

Companies Act, 1956—Section 391—A scheme under Section 391 of the Companies Act does not have the effect of creating new debt—The scheme simply makes the original debt payable in a manner and to the extent provided for in the scheme—In the instant appeal in most of the cases the offence under the N.I. Act has been committed prior to the scheme—Therefore, the offence which has already been committed prior to the scheme does not get automatically compounded only as a result of the said scheme.