https://www.taxtmi.com/caselaws?id=101170 A company under a stayed winding-up regime may still seek prior judicial clearance under section 536(2) for rehabilitative finance, because such an application is not a proceeding to enforce pre-existing rights or liabilities. Financial borrowings, advances, credit limits and related facilities can be treated as bona fide and in the normal course of business where they form part of a genuine revival package aimed at restarting operations, preserving employment and keeping the company as a going concern. Objections based on alleged camouflage, procedural defects, promoter contribution, guarantees, land sale or similar formalities were treated as unpersuasive in light of the rehabilitation purpose. en-us Thu, 06 Dec 1984 00:00:00 +0530 Wed, 08 Feb 2012 17:54:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=101170 A company under a stayed winding-up regime may still seek prior judicial clearance under section 536(2) for rehabilitative finance, because such an application is not a proceeding to enforce pre-existing rights or liabilities. Financial borrowings, advances, credit limits and related facilities can be treated as bona fide and in the normal course of business where they form part of a genuine revival package aimed at restarting operations, preserving employment and keeping the company as a going concern. Objections based on alleged camouflage, procedural defects, promoter contribution, guarantees, land sale or similar formalities were treated as unpersuasive in light of the rehabilitation purpose. Case-Laws Companies Law Thu, 06 Dec 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=101170