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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ARIF S. DOCTOR
In the matter of Companies Act, 1 of 1956; And In the matter of M/s. Navinon Ltd. (In Liquidation) Zulfikar Akbarali Khoja, (Adult Indian Inhabitant) – Appellant
Versus
Official Liquidator, M/s. Navinon Ltd. (In Liquidation) – Respondent
| Table of Content |
|---|
| 1. procedural legal matters concerning assignment. (Para 1 , 2 , 3) |
| 2. facts regarding the winding up of navinon. (Para 4) |
| 3. arguments from the official liquidator about void transactions. (Para 5 , 6) |
| 4. validation requirements under section 536(2). (Para 7 , 8 , 9 , 10) |
| 5. fraudulent nature of the assignment. (Para 11 , 12 , 13) |
| 6. arguments from applicants related to bona fide purchase. (Para 15 , 16 , 17 , 18 , 19) |
| 7. claim for restitution based on prior expenses. (Para 20 , 21 , 22) |
| 8. rejoinder from the official liquidator addressing applicants' claims. (Para 23 , 24 , 25 , 26) |
| 9. court’s decision on the validity of the deed of assignment. (Para 28) |
| 10. conclusion on the ratification of the deed and the final order. (Para 29 , 30 , 31) |
| 11. final order and implications. (Para 32 , 33) |
JUDGMENT :
ARIF S. DOCTOR, J.
1. Since the issue that arises for consideration in the Official Liquidator’s Report (“OLR”) and the Interim Application are essentially two sides of the same coin, both the captioned proceedings were, with the consent of the Learned Counsel, heard together and are being disposed of by this common order.
2. The issue for consideration in both captioned proceeding
Transactions executed after the commencement of winding-up proceedings are void under Section 536(2) of the Companies Act unless validated by the court, reinforcing the need for evidence that such tr....
Under Section 536(2), post-petition dispositions voidable; court validates bona fide property transfers benefiting creditors via fair value payments where buyer ignorant via due diligence, despite di....
Section 536(2) of the Companies Act, 1956 allows the court to validate bona fide transactions made after the commencement of winding up, emphasizing the importance of protecting legitimate interests ....
The sale of property during winding up proceedings is void if executed without court sanction and with fraudulent intent to evade creditors' claims.
Court discretion under Section 536(2) validates interregnum dispositions if bona fide, fair, in company/JV interest, preventing paralysis, ensuring project completion/public benefit.
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