V. Ramasubramanian, J.

1. This is an application taken out by a third party to the winding up proceedings, seeking the validation of a transaction that took place between him and the company in liquidation way back on 30.01.1997, transferring the leasehold rights that the company in liquidation had, on an immovable property. This application is filed under Section 536(2) of the Companies Act, 1956.

2. I have heard Mr. T.K. Seshadri, learned senior counsel for the applicant, Mr. M.Devaraj, learned counsel for the State Bank of India which brought the property to sale before the Debts Recovery Tribunal, Mr. Thiyageswaran, learned counsel appearing for the auction purchaser and Mr. Arvind Shukla, learned Official Liquidator.

3. The sequence of events that have led to the filing of the above application, can be summarised in the chronological order as follows:

(a) M/s. Easun Engineering Co. Ltd. was the sole and absolute owner of two pieces of land, one measuring 52507 sq.ft. (21 grounds and 2107 sq.ft.) and another measuring 6360 sq.ft. (2 grounds and 1560 sq.ft.), both bearing Municipal Door No. Old No.35/5 and New No.476, Anna Salai, Nandanam, Chennai 600 035;

(b) Out of the