https://www.taxtmi.com/caselaws?id=110397 The Supreme Court partially allowed the appeal concerning post-10-7-1986 loans under section 536(2) of the Companies Act, 1956. The High Court's decision to set aside the Single Judge's order on this matter was found beyond the scope of the appellant's appeal. The Court emphasized the necessity of timely applications and the benefit to the company or creditors in granting leave for disposition of assets. The appellant's attempt to convert old unsecured debts into secured debts without prior security was deemed inappropriate. The Division Bench stressed that leave under section 536(2) should serve the company or its creditors collectively, not individual creditors seeking retrospective security. en-us Thu, 15 Apr 2004 00:00:00 +0530 Fri, 29 Apr 2016 16:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=110397 The Supreme Court partially allowed the appeal concerning post-10-7-1986 loans under section 536(2) of the Companies Act, 1956. The High Court's decision to set aside the Single Judge's order on this matter was found beyond the scope of the appellant's appeal. The Court emphasized the necessity of timely applications and the benefit to the company or creditors in granting leave for disposition of assets. The appellant's attempt to convert old unsecured debts into secured debts without prior security was deemed inappropriate. The Division Bench stressed that leave under section 536(2) should serve the company or its creditors collectively, not individual creditors seeking retrospective security. Case-Laws Companies Law Thu, 15 Apr 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=110397