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IN THE HIGH COURT OF JUDICATURE AT MADRAS
MR.JUSTICE SENTHILKUMAR RAMAMOORTHY, J
S.V.Srinivasulu – Appellant
Versus
Official Liquidator, High Court, Madras – Respondent
ORDER :
Background:
Maxworth Orchards (India) Limited (the Company) was engaged in the business of acquiring lands to set up fruit orchards/plantations thereon. In course of business, one of the projects developed by the Company was the Maxworth-Karandapalli project. According to the Company, it acquired about 91.65 acres of land in Karandapalli village. After paying full sale consideration, the Company states that general powers of attorney were executed in favour of B.Karthikeyan, an employee of the Company. As agent of the Company, it is stated that B.Karthikeyan executed sale deeds in favour of 52 customers between 1996 and 1997.
2. The Company thereafter faced financial difficulties; a winding up petition was presented by a creditor on or about 24.02.1998; and an Administrator was appointed in said petition to take charge of the assets and affairs. Later, the Official Liquidator was also appointed as Provisional Liquidator. After excluding the extents of land sold to customers in the Maxworth-Karandapally and Maxworth-Bogasandiram Projects, on the basis of orders of this Court, the remaining extents of 78.75 acres in Erudhukottai village and 56.06 acres in Karandapally village, a
Sale deeds executed after a company's winding up are void unless validated by the court, while powers of attorney coupled with interest remain valid despite the principal's death.
Sale deeds executed after a company's winding up are void unless validated by the court, while powers of attorney coupled with interest remain valid despite the principal's death.
Dispositions made after winding up under Section 536(2) of the Companies Act, 1956, are void unless validated by the Court, reaffirming the authority of the Official Liquidator over disputed properti....
Transactions involving the sale of company assets after winding up are void unless validated by the court, emphasizing the necessity of registered sale deeds for property transfers.
The court upheld that powers of attorney executed post-winding-up are void, emphasizing the need for registered sale deeds to establish valid ownership, reaffirming precedence in the corporate liquid....
Sale deeds executed post-winding up are void under Section 536(2) of the Companies Act, 1956, and powers of attorney executed for fraudulent purposes do not confer rights over property.
Compliance with statutory requirements for death certificates and the impact of delay in filing applications on the admissibility of claims.
Conveyances executed post-winding up and in violation of court orders are void; title cannot be conveyed under a power of attorney.
The power of attorney authorized the attorney to mortgage the property, creating a binding mortgage valid against the family's claims, even if the borrowing parties did not own the property.
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