https://www.taxtmi.com/caselaws?id=279794 Transfers of company property made shortly before winding up may be avoided where the record shows no genuine consideration, no proper corporate authorisation, and a preference of selected creditors over the general body of creditors. The statutory protection for transfers made in the ordinary course of business or in good faith for valuable consideration does not apply on such facts. The deeming rules for commencement of winding up and avoidance of prejudicial transfers operate to protect creditors, and the impugned transfers were treated as fraudulent and annulled, enabling the Official Liquidator to take possession and deal with the properties according to law. en-us Fri, 02 Aug 1996 00:00:00 +0530 Fri, 05 Apr 2019 16:27:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=279794 Transfers of company property made shortly before winding up may be avoided where the record shows no genuine consideration, no proper corporate authorisation, and a preference of selected creditors over the general body of creditors. The statutory protection for transfers made in the ordinary course of business or in good faith for valuable consideration does not apply on such facts. The deeming rules for commencement of winding up and avoidance of prejudicial transfers operate to protect creditors, and the impugned transfers were treated as fraudulent and annulled, enabling the Official Liquidator to take possession and deal with the properties according to law. Case-Laws Companies Law Fri, 02 Aug 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=279794