2009 (4) TMI 1047

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.... advanced from time to time. According to respondent No. 1 herein, in terms of the loan agreement, the Company in liquidation had mortgaged the property in question in favour of respondent No. 1 herein. According to respondent No. 1, as the Company in liquidation did not repay the amounts in terms of the mortgage deed, vide two sale deeds dated 11.2.1999 and 16.2.1999, the subject lands stood sold in its favour with possession. In the meantime, it appears that petition for winding up was moved on 14th October, 1996 and the Company was ordered to be wound up on 10th March, 1999. Following the order of winding up, the Official Liquidator issued a notice on 1 st June, 1999 for handing over the assets and effects of the Company in liquidation....

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.... Company in liquidation. It appears that in this case apart from the subject lands there are no other assets except goodwill. This aspect is very important. If a Company does not possess any other assets then the interest of the creditors, both secured and unsecured, would be jeopardized if the transfer is validated. In this case it appears that Indian Bank was not heard. It was not even made a party. The Court has not examined the list of creditors both secured and unsecured whose security/claims would stand defeated on validation of the sale deed. Moreover, it is important to note that there was no prayer for validation in Company Application No. 1275 of 1999 and even without said prayer the Court has allowed validation which was erroneou....