https://www.taxtmi.com/caselaws?id=105074 A transfer of company assets was not shown to be a fraudulent preference or otherwise void against the official liquidator because the evidence did not prove inadequate consideration, collusion, or a dishonest intent to prefer one creditor over others. The assets were subject to mortgage and hypothecation, the company was in financial distress, and the secured creditor was entitled to exercise its statutory powers. Section 537 was held inapplicable because the sale occurred before commencement of winding up. Mere relationship with a connected person was insufficient, without reliable evidence of fraud, to invalidate the transfer. en-us Fri, 31 Dec 1999 00:00:00 +0530 Fri, 02 Mar 2012 13:35:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=105074 A transfer of company assets was not shown to be a fraudulent preference or otherwise void against the official liquidator because the evidence did not prove inadequate consideration, collusion, or a dishonest intent to prefer one creditor over others. The assets were subject to mortgage and hypothecation, the company was in financial distress, and the secured creditor was entitled to exercise its statutory powers. Section 537 was held inapplicable because the sale occurred before commencement of winding up. Mere relationship with a connected person was insufficient, without reliable evidence of fraud, to invalidate the transfer. Case-Laws Companies Law Fri, 31 Dec 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=105074