https://www.taxtmi.com/caselaws?id=194295 An agreement for sale of a company's only immovable asset, entered into during financial distress, was treated as a fraudulent preference because it did not itself create any enforceable interest in the property and its timing and effect prejudiced the general body of creditors. The claimed part performance could not prevail over the company's obligations in winding up. The board resolution alone was also insufficient to authorise disposal of the whole or substantially the whole undertaking without shareholder approval under the Companies Act. Shareholder consent was therefore required, and the proposed transfer was invalid; the order declining execution and registration of the sale deed was sustained. en-us Mon, 17 Aug 2009 00:00:00 +0530 Wed, 04 Oct 2023 16:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=194295 An agreement for sale of a company's only immovable asset, entered into during financial distress, was treated as a fraudulent preference because it did not itself create any enforceable interest in the property and its timing and effect prejudiced the general body of creditors. The claimed part performance could not prevail over the company's obligations in winding up. The board resolution alone was also insufficient to authorise disposal of the whole or substantially the whole undertaking without shareholder approval under the Companies Act. Shareholder consent was therefore required, and the proposed transfer was invalid; the order declining execution and registration of the sale deed was sustained. Case-Laws Companies Law Mon, 17 Aug 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=194295