Validation of interregnum dispositions: court may save bona fide transactions; stamping defects are curable and POA remains effective.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Validation under Section 536(2) is exercised by the court to save bona fide interregnum dispositions: the court may "order otherwise" and validate transactions that are fair, expedient and in the interest of the company and its creditors, and the 2019 agreements were upheld on that ground. Insufficient stamping renders instruments inadmissible in evidence but is a curable defect and does not ipso facto render the agreements void, so the stamping objection was rejected. An irrevocable power of attorney creating an interest cannot be unilaterally revoked in liquidation and remained effective. External departmental correspondence did not nullify internal joint-venture arrangements acted upon and subsequently validated.....