( 1 ) THE appellant had advanced loans to the respondent Company between 23/2/1976 till 10/7/1986. On 10/7/1986 an application for winding up was filed against the respondent by an unsecured creditor. Subsequent to this on 1/10/1986 and 19/1/1988, the appellant sanctioned two further loans to the Company. In 1990 the Company as well as the appellant made an application under S. 536 (2) of the Companies Act, 1956 for allowing the disposition of the Companys properties "which may have to take place" as a consequence of the loans advanced by the appellant to the Company from 1976. The learned Single Judge allowed the application in part by granting leave to dispositions by the Company of its assets under Section 536 (2) in respect of those loans which were made subsequent to the commencement of the winding up of the respondent Company, namely, 10/7/1986, but refusing such leave in respect of the prior transactions.

( 2 ) THE appeal preferred by the appellant was dismissed by the Division Bench by holding that leave under S. 536 (2) should normally be granted if the dispositions were necessary for the purpose of obtaining funds for the Company or otherwise in the interest of the Compan