https://www.taxtmi.com/caselaws?id=390981 A disposition made after the commencement of winding up is void unless the Court orders otherwise. Where consent terms or payments are entered into after the deemed commencement date, the party seeking validation must plead and prove that the transaction was bona fide, in the ordinary course of business, and for the benefit of the company in liquidation. The Bombay High Court noted that the winding up petition date fixes the relevant commencement point, and that payments made after that date, including after appointment of a provisional liquidator, were not shown to satisfy the statutory test. The transactions were therefore not protected against creditors' claims and the sums received had to be restored to the liquidation estate. en-us Tue, 14 Jan 2020 00:00:00 +0530 Wed, 06 May 2020 16:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=390981 A disposition made after the commencement of winding up is void unless the Court orders otherwise. Where consent terms or payments are entered into after the deemed commencement date, the party seeking validation must plead and prove that the transaction was bona fide, in the ordinary course of business, and for the benefit of the company in liquidation. The Bombay High Court noted that the winding up petition date fixes the relevant commencement point, and that payments made after that date, including after appointment of a provisional liquidator, were not shown to satisfy the statutory test. The transactions were therefore not protected against creditors' claims and the sums received had to be restored to the liquidation estate. Case-Laws Companies Law Tue, 14 Jan 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=390981