https://www.taxtmi.com/caselaws?id=195786 Section 536(2) validation of post-petition dispositions must fit the winding-up scheme: an application should not be entertained before the petition is admitted and advertised, because creditor participation and pari passu treatment would otherwise be undermined. The commentary also stresses that a proposed share sale can be validated only if it is bona fide, in the ordinary course of business, and for the benefit of the company and its creditors. Where material facts are withheld, secured creditors are not properly heard, or selective payments would disturb equal distribution, the transaction will not satisfy that standard. en-us Fri, 20 Dec 2013 00:00:00 +0530 Fri, 10 Nov 2017 09:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=195786 Section 536(2) validation of post-petition dispositions must fit the winding-up scheme: an application should not be entertained before the petition is admitted and advertised, because creditor participation and pari passu treatment would otherwise be undermined. The commentary also stresses that a proposed share sale can be validated only if it is bona fide, in the ordinary course of business, and for the benefit of the company and its creditors. Where material facts are withheld, secured creditors are not properly heard, or selective payments would disturb equal distribution, the transaction will not satisfy that standard. Case-Laws Companies Law Fri, 20 Dec 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=195786