Section 391 makes the following provisions

Where a compromise or arrangement is proposed,

(a) between a company and its creditors or any class of them; or

(b) between a company and its members or any class of them;

the Court may, on the application of the company or any creditor or member or of

the class involved, or liquidator, order that a meeting of the creditors or members (or any class of them) be called and held in the manner directed by the Court [Sub-section (1)].

The application to the Court under Section 391(1) may be made in the case of a company in liquidation, not only by the liquidator but also by a creditor or a member. This right of a creditor or member is not taken away by reason of the company being wound up-Rajendra Prasad Aggarwal Vs. Official Liquidator [1978] 48 Compo Cas. 476.

Application by Transferees of Shares and Financiers. Transferees of shares and financiers may apply with the leave of the court-A.K. Mishra Vs. Wearwell Cycle Co. (India) Ltd. [1993] 78 Compo Cas. 252 (Delhi). In this case, two persons (one of whom was the Managing Director) proposed to provide funds to the company for its revival. The cort directed the Official Liquidator to register them as members in pursuance of

transfer of shares to them ana also to treat them as creditors in lieu of specified creditors who were to be paid with their money. They, thus, became competent to file a petition

for leave of the court for confirmation of the scheme.