https://www.taxtmi.com/caselaws?id=98644 A post-commencement disposition of company property under section 227 of the Companies Act, 1948 may be validated only if the applicant acted bona fide and the transaction was a reasonable step for the company's benefit, assessed on just and fair equitable principles. Good faith alone is insufficient where the act is not reasonable in the circumstances. On the facts, the receiver's payment arrangement was upheld because it was made bona fide, no prejudice to creditors was shown, and the broader equities favoured validation rather than allowing a windfall to the liquidator. en-us Tue, 21 Oct 1969 00:00:00 +0530 Sat, 21 Jan 2012 13:42:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98644 A post-commencement disposition of company property under section 227 of the Companies Act, 1948 may be validated only if the applicant acted bona fide and the transaction was a reasonable step for the company's benefit, assessed on just and fair equitable principles. Good faith alone is insufficient where the act is not reasonable in the circumstances. On the facts, the receiver's payment arrangement was upheld because it was made bona fide, no prejudice to creditors was shown, and the broader equities favoured validation rather than allowing a windfall to the liquidator. Case-Laws Companies Law Tue, 21 Oct 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98644