https://www.taxtmi.com/caselaws?id=96570 In winding-up proceedings, the court may examine the basis of a judgment debt and go behind an ex parte decree where circumstances indicate that no judgment ought to have been entered; fraud or collusion need not be proved. A decree arising from an unauthorised advance was not binding on the company because its managing agents lacked authority under the articles to borrow, the advance was absent from the company's books, the company's receipt or benefit was not established, and the transaction served the agents' own purposes. A shareholder advancing funds was required to ascertain the limits of the agents' authority. The liquidator could therefore resist execution, and the injunction against execution remained in force. 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 examine the basis of a judgment debt and go behind an ex parte decree where circumstances indicate that no judgment ought to have been entered; fraud or collusion need not be proved. A decree arising from an unauthorised advance was not binding on the company because its managing agents lacked authority under the articles to borrow, the advance was absent from the company's books, the company's receipt or benefit was not established, and the transaction served the agents' own purposes. A shareholder advancing funds was required to ascertain the limits of the agents' authority. The liquidator could therefore resist execution, and the injunction against execution remained in force. Case-Laws Companies Law Wed, 14 Oct 1931 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96570