JUDGMENT Das, J. - This is an application under sec. 153 of the Indian Companies Act made by the Indian Crescent Bank, Ltd. (hereinafter called the Company). All that the Company now prays for is that liberty be given to it to convene meetings of its creditors and share-holders for the purpose of considering, and, if thought fit, approving, with or without modifications, a scheme of arrangement proposed by the Company for the gradual payment of its debts. The Company was incorporated under the Indian Companies Act in the year 1930 under the name of Kamarpur Bank, Ltd., which name, however, was on a subsequent date, not mentioned in the petition, changed into its present name. The authorised capital of the Company is Rs. 50,00,000 divided into 10,000 preference shares of Rs. 100 each and 1,60,000 ordinary shares of Rs. 20 each. The subscribed capital as on the 30th June, 1947, is, however, Rs. 57,000 out of which only Rs. 12,875-8 has been paid up. The registered office of the Company was until the 7th August. 1947, situate at No. 5, Dharramtala Street, Calcutta, within the jurisdiction of this Court. On the last-mentioned date it was transferred to Dacca. 2. The Company carries on banking business of every description. Most of its depositors are said to be Muslims. Since July. 1947, in view of the then impending division of British India into two new Dominions and the partition of Bengal, many of the depositors, who were Government servants and declared their option to serve the Dominion of Pakistan as and when constituted, began to withdraw their deposits with a view to closing their respective accounts and leaving the Dominion of India. These heavy withdrawals resulted in very considerable depletion of the cash and liquid assets of the Company. Further the Company, it is said, had, on a date not mentioned in the petition, made over to the Bharati Central Bank, Ltd., the sum of Rs. 49,336 for transmission from Bhairab Bazar to Calcutta and received demand drafts issued in its favour by the Bharati Central Bank, Ltd., on their head office in. Calcutta. Shortly thereafter and before the Company could realise the amounts of the demand drafts the Bharati Central Bank, Ltd., went into liquidation with the result that the Company is now faced with the loss of that sum or a substantial part thereof. Calcutta. Shortly thereafter and before the Company could realise the amounts of the demand drafts the Bharati Central Bank, Ltd., went into liquidation with the result that the Company is now faced with the loss of that sum or a substantial part thereof. By reason of the depletion of its case and liquid assets, brought about, according to the Company, by the circumstances which I have just summarised, the Company finds it difficult to meet the demands of its creditors and consequently proposes to submit, for the consideration of its creditors, a scheme of arrangement, a copy whereof is annexed to the petition. Hence the present application. The proposed scheme may be summarised as follows:- (a) Sundry liabilities for salaries, allowances, for office expenses, legal charges, and house rents will not be affected by the scheme, but shall be paid in full (cl. 3). (b) All depositors up to Rs. 50 and certain bill collection proceeds shall be paid within four months from the date of sanction of the scheme (cl. 4). (c) The creditors will give up all arrears of interest and future interest (cl. 5). (d) Secured creditors to the extent of their security will not be affected by the scheme (cl. 12). (e) 80 per cent. of the principal amount due to the creditors, except the secured creditors shall be paid as follows:-- (i) 10 per cent. within six months from date of sanction; (ii) 20 per cent. within one year from last payment; (iii) 20 per cent. within two year six months from date of sanction; (iv) 30 per cent. within three years six months from date of sanction (cl. 6). (f) 20 per cent. will remain in suspense account and will be repaid out of profits before any dividend is declared on any share (cl. 7). (g) Directors will not get their deposits until 80 per cent. of the claims of creditors are satisfied in full (cl. 8). (h) The amount outstanding on shares will be called up and default of payment the shares of defaulters will be forfeited (cl. 9). (i) The Board of Directors shall be reshuffled so that there will be six directors elected by the creditors and five directors elected by the share-holders at separate meetings to be called within three months from the date of sanction (cl. 10). 3. 9). (i) The Board of Directors shall be reshuffled so that there will be six directors elected by the creditors and five directors elected by the share-holders at separate meetings to be called within three months from the date of sanction (cl. 10). 3. Before I can give the Company leave to convene meetings of its creditors and share-holders I have to be satisfied that this is a reasonable scheme and is capable of being implemented by the Company. Annexed to the petition is a statement of account headed "Approximate statements as at 30th December, 1947, based on the last available figures." That statement, according to the petition, purport to show the assets and liabilities of the three branches the Company has in the Dominion of India. It shows the total liabilities of the Company to its creditors in the Dominion of India as Rs. 2,45,354-9-3 made up of Rs. 1,38,636-14-9 being its time liability and Rs. 1,06,717-10-9 being its demand liability. As against these liabilities the Company is said to have, within the Dominion of India, good and realisable assets valued at Rs. 3,31,112-2-3. On this basis the excess of assets over liabilities is Rs. 85,757-9. Rs. 19,291-14-9 being the value of printed stationary will not be of any use for payment to creditors and Rs. 49,336 due from the Bharati Central Bank, Ltd., which is in liquidation appears at the moment to be as good as gone. If I, therefore, deduct these two sums aggregating to Rs. 68,627-14-9 the net excess of assets over liabilities will dwindle down to Rs. 17,129-10-3. If the scheme is eventually sanctioned the Company will remain in existence and presumably will have to maintain some stall at the registered office and at such of its Branches as the new management may choose to run. It cannot be reasonably expected that a Bank with a paid-up capital of Rs. 12,875-8 and working under a scheme will attract any new depositors except those who may be ignorant or otherwise hood-winked. Therefore the advertisement charges will have to be met out of the net excess I have mentioned. Further allowances must be made for a reasonable percentage of non-realisation of the book debts. Then there will be cost of litigation for realising the book debts. Therefore the advertisement charges will have to be met out of the net excess I have mentioned. Further allowances must be made for a reasonable percentage of non-realisation of the book debts. Then there will be cost of litigation for realising the book debts. On the whole, I am not at all satisfied, on the very meagre and wholly vague information as to the nature of the Company's Indian assets given in the petition, that the proposed scheme is a reasonable and practical scheme. 4. There is yet another serious objection to the proposed scheme. Ordinarily a scheme sanctioned by this Court will not per se be binding on the creditors in Pakistan which is a foreign state and will be no defence to their action in the Pakistan Court [see the cases cited in note (n) at p. 798 of Halsbury's Law of England, 2nd Edn., Vol. 5]. I have no doubt, however, that on the principle of international law and as a matter of convenience, the Courts in the two Dominions will cooperate with each other and if an order fur winding-up or scheme is made by the Court in one Dominion the Court in the other Dominion will adopt ancillary proceedings. But in order to enable the Pakistan Court to treat the scheme sanctioned by this Court as the main proceedings and adopt ancillary proceedings there, the scheme should be so framed as to be reasonable and fair to the creditors in Pakistan. If the Indian assets yield a larger percentage of payment to the Indian creditors than the Pakistan assets will yield to the Pakistan creditors it will not be fair to frame a scheme on the basis of the Indian assets and liabilities alone and to distribute the assets amongst the Indian creditors to the exclusion of the Pakistan creditors, just as in the converse case the scheme will be unfair to the Indian creditors. Further as pointed out by Vaughan William. J., In re: Scottish and Australian Chartered Bank (1893) 3 Ch. 385 at p. 394, 395 notice of any scheme proposed in the court of a particular country should go to all creditors wherever they may be, so that they can, if they like, come in and participate in the distribution under the scheme. J., In re: Scottish and Australian Chartered Bank (1893) 3 Ch. 385 at p. 394, 395 notice of any scheme proposed in the court of a particular country should go to all creditors wherever they may be, so that they can, if they like, come in and participate in the distribution under the scheme. For this purpose it is essential to lay before the Court all relevant information as to the Company's entire assets and liabilities so as to enable the Court to judge whether the proposed scheme is a reasonable one. There is no indication in the petition as to the State of the Company's assets and liabilities in Pakistan. Indeed, apart from the fact that the Company's registered office is now at Dacca no information is given by the petition as to the number of branches the Company has in Pakistan and what are its assets and liabilities there. It is, therefore, impossible on such inadequate information to entertain this application for a scheme which by its terms purports to bind all creditors wherever they are. I am further not inclined to be keen on perpetuating the existence of a Company with a paid up capital of Rs. 12,875-8 so as to enable it to use the moneys exceeding several lacs already deposited and to rope in other unwary and innocent depositors whose moneys will go the same way as those of the unfortunate past depositors. For reasons stated above I am unable to regard the proposed scheme, on its merits, as one which may be permitted to be submitted to the creditors and I, therefore, reject this application. A far more difficult question as to the jurisdiction of this Court to entertain this application occurred to me in view of a fact that the registered office of the Company is at Dacca over which this Court has no jurisdiction. Mr. R. Chaudhuri argued in favour of the jurisdiction of this Court at some length with his usual ability and learning but in view of the fact that I am not. on merits, prepared to accede to this application, I reserve my opinion on the vexed question until 1 hear arguments on both sides in a future case.