06-23-2011, 07:52 AM
You are welcome. Query wise reply is as under
1st the word 'obligation' after the word 'unless' (exception) doesnt mean the obligation under which company will redeem debentures on maturity. Had this word 'obligation' referred to a normal obligation on company to redeem on maturity, then exception would not have existed. Got it? Think from another perspective, if this obligation referred to normal obligation then this section would not have existed to give power to companies for re issuance of redeemed debentures. This obligation on company in exception refers to obligation (other than the obligation to repay on maturity which company agreed in debenture agreement and also the obligation to redeem before even maturity enforcable by debenture holder through debenture agreement (say in the event of default in regular payments)).
2nd The answer to second one flows from the first one. Consider the obligation on company enforceable by other lenders or shareholders through court to save their legally enforceable interest.
1st the word 'obligation' after the word 'unless' (exception) doesnt mean the obligation under which company will redeem debentures on maturity. Had this word 'obligation' referred to a normal obligation on company to redeem on maturity, then exception would not have existed. Got it? Think from another perspective, if this obligation referred to normal obligation then this section would not have existed to give power to companies for re issuance of redeemed debentures. This obligation on company in exception refers to obligation (other than the obligation to repay on maturity which company agreed in debenture agreement and also the obligation to redeem before even maturity enforcable by debenture holder through debenture agreement (say in the event of default in regular payments)).
2nd The answer to second one flows from the first one. Consider the obligation on company enforceable by other lenders or shareholders through court to save their legally enforceable interest.
