law: Companies Act, 1956
  Sec 101    -    
  
  Application to Court for confirming order, objections by creditors, and
  
  settlement of list of objecting creditors. 
  (1) Where a company has passed a resolution
  
  for reducing share capital, it may apply, by petition, to the Court for an
  
  order confirming the reduction.
  (2) Where the proposed reduction of share
  
  capital involves either the diminution of liability in respect of unpaid share
  
  capital or the payment to any shareholder of any paid-up share capital, and in
  
  any other case if the Court so directs, the following provisions shall have
  
  effect, subject to the provisions of sub-section (3) 
  (a) every creditor of the company who at the
  
  date fixed by the Court is entitled to any debt or claim which, if that date
  
  were the commencement of the winding up of the company, would be admissible in
  
  proof against the company, shall be entitled to object to the reduction ;
  (b) the Court shall settle a list of creditors
  
  so entitled to object, and for that purpose shall ascertain, as far as possible
  
  without requiring an application from any creditor, the names of those
  
  creditors and the nature and amount of their debts or claims, and may publish
  
  notices fixing a day or days within which creditors not entered on the list are
  
  to claim to be so entered or are to be excluded from the right of objecting to
  
  the reduction ;
  (c) where a creditor entered on the list whose
  
  debt or claim is not discharged or has not determined does not consent to the
  
  reduction, the Court may, if it thinks fit, dispense with the consent of that
  
  creditor, on the company securing payment of his debt or claim by
  
  appropriating, as the Court may direct, the following amount :
  (i) if the company admits the full amount of
  
  the debt or claim, or, though not admitting it, is willing to provide for it,
  
  then, the full amount of the debt or claim ;
  (ii) if the company does not admit and is not
  
  willing to provide for the full amount of the debt or claim, or if the amount
  
  is contingent or not ascertained, then, an amount fixed by the Court after the
  
  like inquiry and adjudication as if the company were being wound up by the
  
  Court.
  (3) Where a proposed reduction of share
  
  capital involves either the diminution of any liability in respect of unpaid
  
  share capital or the payment to any shareholder of any paid-up share capital,
  
  the Court may, if, having regard to any special circumstances of the case, it
  
  thinks proper so to do, direct that the provisions of sub-section (2) shall not
  
  apply as regards any class or any classes of creditors.