https://www.taxtmi.com/caselaws?id=100232 The court held that the pledge of machinery by a company in liquidation was not a fraudulent preference as alleged by the official liquidator, as the pledge occurred before the winding-up order. The court emphasized that the pledgee had the right to sell the machinery if not redeemed within the agreed time frame, and the subsequent sale was valid. The Indian Overseas Bank ceased to be a preferential creditor once the pledged machinery was redeemed. The court rejected the company application, stating it was not maintainable, and highlighted the importance of following legal procedures in transactions involving insolvent entities. en-us Thu, 08 Jul 1982 00:00:00 +0530 Tue, 31 Jan 2012 16:38:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=100232 The court held that the pledge of machinery by a company in liquidation was not a fraudulent preference as alleged by the official liquidator, as the pledge occurred before the winding-up order. The court emphasized that the pledgee had the right to sell the machinery if not redeemed within the agreed time frame, and the subsequent sale was valid. The Indian Overseas Bank ceased to be a preferential creditor once the pledged machinery was redeemed. The court rejected the company application, stating it was not maintainable, and highlighted the importance of following legal procedures in transactions involving insolvent entities. Case-Laws Companies Law Thu, 08 Jul 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=100232