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Issues:
Validity of sale of company property in a winding-up scenario; Jurisdiction of Madras High Court in winding-up proceedings; Effect of attachment before judgment on sale of property; Validity of sale deed executed by liquidator; Recognition of winding up order by plaintiffs; Jurisdiction of winding up court in dealing with immovable properties in a foreign country. Analysis: The case involved a dispute regarding the sale of a match factory by the official liquidator of a company that was wound up by the Madras High Court. The plaintiffs, who filed a suit for money against the company, faced challenges when attempting to execute the decree against the factory, which had been sold to a third party. The central issue was whether the sale of the factory by the liquidator was valid and whether the attachment before judgment affected the sale. The court examined the jurisdiction of the Madras High Court in winding up the company and the authority of the liquidator to sell the property located in Travancore. It was argued that the properties did not vest in the liquidator upon winding up, as in bankruptcy, and therefore, the sale might be invalid. However, the court held that the sale was valid as the liquidator had the authority to sell the property, and the sale deed was executed and registered in compliance with Travancore laws. The court emphasized that the plaintiffs had recognized the validity of the winding up order by impleading the liquidator in the case. Therefore, they could not challenge the sale after accepting the winding up proceedings. Additionally, the court distinguished English rulings cited by the counter-petitioner, stating that those cases were not directly applicable to the present scenario. The judgment highlighted that the jurisdiction of the Madras High Court to authorize the sale of property in Travancore was not in question, and no conflict of jurisdiction arose since the Travancore court did not attempt to wind up the company. As long as the liquidator complied with the laws of Travancore regarding property transfers, the sale deed was deemed valid, and the attachment before judgment did not affect the sale. In conclusion, the court confirmed the order allowing the objection raised by the vendee of the factory, dismissing the revision petition with costs. The judgment was a comprehensive analysis of the legal principles governing the sale of company assets in a winding-up scenario and the recognition of winding up orders by relevant parties.
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