Effect of Liquidator Sale: a registered sale under the lex situs prevails over a subsequent attachment when made under winding up authority.

A sale of immovable property by an official liquidator completed and registered before an attachment is effective against that attachment where the transfer complied with the lex situs and the liquidator acted under the winding up court's authority. The liquidator succeeds to directors' powers to administer and dispose of company assets subject to supervision, and parties who participated in or recognised the winding up could have challenged the sale only within the winding up proceedings. In absence of shown jurisdictional conflict, a sale valid under the law of the situs confers valid title unaffected by subsequent attachment.

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Issues: Whether a sale of immovable property situate in Travancore, executed and registered by the official liquidator appointed by the Madras High Court before an attachment before judgment, is valid and effective against the attachment.

Analysis: The Court analysed the effect of winding up on corporate assets, distinguishing winding up from bankruptcy and noting that the liquidator steps into the directors' powers for administration and disposition of company property subject to the supervision of the winding up court. The sale by the Madras official liquidator was completed before the date of attachment and satisfied the formalities required by the lex situs for transfers of immovable property in Travancore. The plaintiffs had earlier recognised the liquidator's status by impleading him and therefore, having accepted the winding up proceedings, could have challenged the sale in the winding up court or proved their claim there. No conflict of jurisdiction between Madras and Travancore courts was shown; the Madras High Court had jurisdiction to wind up the company and to authorise the liquidator to deal with the company's assets, and the Travancore court was bound to recognise a sale that complied with the law of the situs.

Conclusion: The sale executed and registered by the official liquidator before the attachment is valid and the subsequent attachment does not affect the vendee's title; the objection of the vendee was rightly allowed and the revision petition is dismissed.

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