Sections 176 and 177 of the Contract Act, 1872

Supreme Court of India held that where financial institution initiated arbitration proceeding and an award had been passed on consent which was a simple money decree, deed of hypothecation would continue in spite of arbitration award and status of appellant would not change as a secured creditor to an unsecured creditor and it was not permissible for said institution to put forth a stand that it would not be bound by scheme of arrangement approved by Company Judge.