https://www.taxtmi.com/caselaws?id=98643 Rule 139 of the Companies (Court) Rules, 1959 was treated as a mandatory safeguard governing directions sought for sale of company assets under Section 457(1)(c) of the Companies Act, 1956. Compliance with the summons-for-directions procedure and notice to the petitioning creditor was held to be a condition precedent, reflecting audi alteram partem. Non-compliance deprived the court of jurisdiction to authorise the sale and rendered the orders void, not merely irregular or voidable, so the defect could be raised collaterally. Because the foundational sale directions were void, the proposed sale of the textile mill could not be confirmed and fresh directions were required. en-us Wed, 25 Jun 1969 00:00:00 +0530 Sat, 21 Jan 2012 13:39:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98643 Rule 139 of the Companies (Court) Rules, 1959 was treated as a mandatory safeguard governing directions sought for sale of company assets under Section 457(1)(c) of the Companies Act, 1956. Compliance with the summons-for-directions procedure and notice to the petitioning creditor was held to be a condition precedent, reflecting audi alteram partem. Non-compliance deprived the court of jurisdiction to authorise the sale and rendered the orders void, not merely irregular or voidable, so the defect could be raised collaterally. Because the foundational sale directions were void, the proposed sale of the textile mill could not be confirmed and fresh directions were required. Case-Laws Companies Law Wed, 25 Jun 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98643