https://www.taxtmi.com/caselaws?id=786823 A pre-winding-up lease of valuable company assets on nominal rent, coupled with a clause for transfer of absolute title without further consideration, was treated as a sham lacking arm's-length dealing and commercial bona fides. The Court distinguished fraudulent transfers from merely void transfers against a liquidator and held that substance, not the section cited, determines the character of the transaction. Because the arrangement was found to be fraudulent, dishonest, and prejudicial to the company, creditors, and shareholders, it was void from inception and not binding on the Official Liquidator. The limitation-based refusal of relief could not stand where the underlying transfer itself was fraudulent. en-us Tue, 17 Feb 2026 00:00:00 +0530 Fri, 20 Feb 2026 08:23:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=786823 A pre-winding-up lease of valuable company assets on nominal rent, coupled with a clause for transfer of absolute title without further consideration, was treated as a sham lacking arm's-length dealing and commercial bona fides. The Court distinguished fraudulent transfers from merely void transfers against a liquidator and held that substance, not the section cited, determines the character of the transaction. Because the arrangement was found to be fraudulent, dishonest, and prejudicial to the company, creditors, and shareholders, it was void from inception and not binding on the Official Liquidator. The limitation-based refusal of relief could not stand where the underlying transfer itself was fraudulent. Case-Laws Companies Law Tue, 17 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=786823