Embezzlement losses in charitable institutions remain allowable when misappropriation is established, irrecoverable, and not a specified-person benefi...
National long-distance undertaking status supports deduction where separately licensed infrastructure, resources, revenue, and expenditure establish c...
Agency reimbursement income follows contractual deposit-liability computation, while pending deposit collections do not constitute deemed-dividend loa...
Membership-consent thresholds for oppression petitions are satisfied by unchallenged voter-list consents, while unsupported forgery claims require pro...
HC held that orders obtained through fraud in the company's liquidation proceedings are nullities and liable to be set aside notwithstanding the lapse of over 30 years, as fraud vitiates limitation and all judicial acts. The appointment and continued control of the Special Officer, who had undisclosed conflicting interests and surreptitiously became the largest creditor and shareholder, was found to be an abuse of process. HC concluded that, given the company's concealed assets, absence of claims from creditors or employees, and the principle that winding up is a last resort, the company should not continue in liquidation and its remaining/traced assets must enure to its benefit. All applications seeking to sustain the fraudulent arrangement, including the prayer to transfer the matter to NCLT, were rejected, and the proceedings were disposed of accordingly.
HC held that orders obtained through fraud in the company's liquidation proceedings are nullities and liable to be set aside notwithstanding the lapse of over 30 years, as fraud vitiates limitation and all judicial acts. The appointment and continued control of the Special Officer, who had undisclosed conflicting interests and surreptitiously became the largest creditor and shareholder, was found to be an abuse of process. HC concluded that, given the company's concealed assets, absence of claims from creditors or employees, and the principle that winding up is a last resort, the company should not continue in liquidation and its remaining/traced assets must enure to its benefit. All applications seeking to sustain the fraudulent arrangement, including the prayer to transfer the matter to NCLT, were rejected, and the proceedings were disposed of accordingly.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4881 
