https://www.taxtmi.com/caselaws?id=96570 In winding-up proceedings, the court may go behind a judgment debt and examine whether it should bind the company, even without proved fraud or collusion. Applying that principle, the managing agents had no authority under the articles to borrow for the company, the advance was not reflected in the company's books, and there was no satisfactory proof that the company received the benefit. The transaction was treated as being for the managing agents' own purposes, and the creditor-shareholder was bound to check the limits of their authority before advancing money. The ex parte decree was therefore not binding on the company, and the liquidator could resist execution. en-us Wed, 14 Oct 1931 00:00:00 +0530 Mon, 09 Jan 2012 14:39:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96570 In winding-up proceedings, the court may go behind a judgment debt and examine whether it should bind the company, even without proved fraud or collusion. Applying that principle, the managing agents had no authority under the articles to borrow for the company, the advance was not reflected in the company's books, and there was no satisfactory proof that the company received the benefit. The transaction was treated as being for the managing agents' own purposes, and the creditor-shareholder was bound to check the limits of their authority before advancing money. The ex parte decree was therefore not binding on the company, and the liquidator could resist execution. Case-Laws Companies Law Wed, 14 Oct 1931 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96570