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TMI Blog2007 (12) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... transaction does not amount to fraudulent transaction or fraudulent preference as envisaged under the provisions of sections 531 and 531A of the Companies Act, 1956, as alleged or otherwise. The applicant has also prayed for the declaration that the said transaction is the bona fide transaction and is not void under section 536(2) of the Act. The applicant has further prayed for a direction to the Official Liquidator not to take possession forcibly or otherwise of the premises in question as it does not belong to the company in liquidation. 2. An affidavit is filed by one Mr. Asad Fazlurrehman Kagdi in support of the judge's summons. This Court has issued notice on 28-11-2006. Notice was waived by learned advocate appearing for the Offici ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same bona fide from the company in liquidation, prior to the order of winding up. In reply to the said letter, the applicant by its letter dated 3-10-2002, submitted copies of the above referred sale deeds to the Official Liquidator along with all other supporting documents. The Official Liquidator has filed OLR No. 23 of 2003, before this Court, in which the present applicant was shown as respondent No. 3. In the said report, the Official Liquidator has, inter alia, prayed for certain directions to be issued to the present applicant to hand over peaceful possession of the premises in question. The applicant has filed detailed affidavit on 19-4-2003, in the said OLR and resisted the contentions raised by the Official Liquidator. In view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot this property transferred in its name in the record of the co-operative society as well as the municipal records, none of the said authorities had informed regarding pendency of the winding up petition. He has, therefore, submitted that the transactions of entering into agreement of sale and the sale deeds, have been duly recorded with the authorities as per the Indian Registration Act and are, therefore, legal and the same did not amount to fraudulent transfer or fraudulent preference within the meanings of sections 531 and 531A of the Companies Act, 1956. 7. Mr. Mrugesh Jani, learned advocate appearing for the Official Liquidator has reiterated the facts stated and averments made in OLR No. 23 of 2003. He has further submitted that he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the sale deeds were also executed by him on 19-10-2000. He has, therefore, submitted that the transactions in question are legal, valid and genuine. 9. After having heard learned advocates appearing for the respective parties and after having gone through the affidavit filed in support of the judge's summons, documents attached with the judge's summons and the affidavit filed by respondent No. 4, the Court is of the view that it is true that during the pendency of the winding up petition, the transactions in question had taken place. However, it has not come on record that the applicant was aware of the fact that winding up proceedings are pending before the Court. It is true that the ex-directors might be aware of winding up proceedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion for winding up (1) if such transfer was not made in the ordinary course of its business, or (2) if such transfer was not made in good faith and for valuable consideration. If the Court comes to the conclusion that such transfer, though made within a period of one year before the presentation of the petition, was made either in the ordinary course of business or in good faith and for valuable consideration, such transfer would not be annulled. The burden of proving that the impugned transaction was not entered into in the ordinary course of business or in good faith and for valuable consideration would be on the Official Liquidator or the creditors impugning the transaction." (p. 97) 11. So far as the present case is concerned, neither ..... X X X X Extracts X X X X X X X X Extracts X X X X
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