https://www.taxtmi.com/caselaws?id=171156 Post-winding-up dispositions securing antecedent debts were held not to be protected under Section 227(2) unless they were bona fide transactions in the ordinary course of current business or were justified by real necessity to preserve the business. A transfer that merely converted unsecured creditors into secured creditors in return for time, without fresh advance or genuine business necessity, disturbed pari passu distribution and could not be validated. The fact that the company may have benefited from an adjournment, or that creditors consented to time, did not justify granting a special preference to selected creditors. The dispositions were therefore treated as void. en-us Thu, 27 Feb 1930 00:00:00 +0530 Wed, 03 Jan 2018 16:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=171156 Post-winding-up dispositions securing antecedent debts were held not to be protected under Section 227(2) unless they were bona fide transactions in the ordinary course of current business or were justified by real necessity to preserve the business. A transfer that merely converted unsecured creditors into secured creditors in return for time, without fresh advance or genuine business necessity, disturbed pari passu distribution and could not be validated. The fact that the company may have benefited from an adjournment, or that creditors consented to time, did not justify granting a special preference to selected creditors. The dispositions were therefore treated as void. Case-Laws Insolvency and Bankruptcy Thu, 27 Feb 1930 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=171156