https://www.taxtmi.com/caselaws?id=395213 Section 536(2) of the Companies Act, 1956 permits validation of a post-petition disposition only if the transaction is bona fide and in the interest of the company and its creditors. A transfer of leasehold rights executed after presentation of a winding-up petition, and after an injunction against alienation, was found unsupported by reliable evidence of good faith; the delayed request for validation and inconsistencies in the stated consideration also counted against the applicants. The Court further applied Article 137 of the Limitation Act, 1963 to treat the validation request as time-barred. On that basis, leave under Section 446(1) to sue the company in liquidation was also refused, since no enforceable transferable interest was established. en-us Thu, 19 Mar 2020 00:00:00 +0530 Tue, 12 May 2020 11:35:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=395213 Section 536(2) of the Companies Act, 1956 permits validation of a post-petition disposition only if the transaction is bona fide and in the interest of the company and its creditors. A transfer of leasehold rights executed after presentation of a winding-up petition, and after an injunction against alienation, was found unsupported by reliable evidence of good faith; the delayed request for validation and inconsistencies in the stated consideration also counted against the applicants. The Court further applied Article 137 of the Limitation Act, 1963 to treat the validation request as time-barred. On that basis, leave under Section 446(1) to sue the company in liquidation was also refused, since no enforceable transferable interest was established. Case-Laws Companies Law Thu, 19 Mar 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=395213