https://www.taxtmi.com/caselaws?id=101052 Section 531A of the Companies Act, 1956 voids a transfer against the liquidator only if it is not in the ordinary course of business or is not made in good faith and for valuable consideration. The burden lies on the applicant to prove want of good faith or inadequacy of consideration. On the facts discussed, the boiler was sold after technical assessment, competitive offers were considered, and the price matched estimated market value, so the transfer was treated as bona fide. A sale within one year before the winding-up petition and outside the ordinary course was not enough by itself to invalidate it, and internal objections to authority did not succeed where directors were acting under a valid resolution and statutory validation applied. en-us Tue, 20 Sep 1983 00:00:00 +0530 Wed, 08 Feb 2012 13:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=101052 Section 531A of the Companies Act, 1956 voids a transfer against the liquidator only if it is not in the ordinary course of business or is not made in good faith and for valuable consideration. The burden lies on the applicant to prove want of good faith or inadequacy of consideration. On the facts discussed, the boiler was sold after technical assessment, competitive offers were considered, and the price matched estimated market value, so the transfer was treated as bona fide. A sale within one year before the winding-up petition and outside the ordinary course was not enough by itself to invalidate it, and internal objections to authority did not succeed where directors were acting under a valid resolution and statutory validation applied. Case-Laws Companies Law Tue, 20 Sep 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=101052