https://www.taxtmi.com/caselaws?id=97275 A disposition of company property made after presentation of a winding-up petition may be validated under section 227 of the Companies Act 1948 where the transaction is bona fide, made in the ordinary course of trading, and intended to benefit the company as a going concern. The court applies ordinary judicial principles in deciding whether to exercise its discretion, and a transaction designed to obtain a preference for existing creditors will not qualify. On the facts, the bank accommodation was for a limited period to enable the company to continue business, so the payment was validated and the bank was entitled to retain the sum received. en-us Mon, 01 Mar 1954 00:00:00 +0530 Mon, 16 Jan 2012 11:36:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=97275 A disposition of company property made after presentation of a winding-up petition may be validated under section 227 of the Companies Act 1948 where the transaction is bona fide, made in the ordinary course of trading, and intended to benefit the company as a going concern. The court applies ordinary judicial principles in deciding whether to exercise its discretion, and a transaction designed to obtain a preference for existing creditors will not qualify. On the facts, the bank accommodation was for a limited period to enable the company to continue business, so the payment was validated and the bank was entitled to retain the sum received. Case-Laws Companies Law Mon, 01 Mar 1954 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=97275