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TMI Blog2018 (4) TMI 486X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Companies Act, 1953 (herein after referred to as 'the Act' for short). 2. The 2nd respondent Tahsildar had sold in public auction 25 cents of property comprised in Sy. No.436/1 of Maneed Village, belonging to the 1st respondent company, for realization of electricity charges and sales tax arrears due from the company. The appellant herein bid in auction the property for a sum of Rs. 1,51,000/-. The sale in question was conducted on 09-05-2005, which was confirmed by the competent authority on 05-09-2002 and the 'Sale Certificate' was consequently issued in favour of the appellant. The Official Liquidator had filed a report before the company court on 27-11-2006 seeking to set aside the sale conducted on 09-05-2005, mainly contendin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It was held that, the impact of the legislative direction in the said provision would indicate that the word 'void' need not necessarily be a stage of nullity in all contingencies. For discerning the legislative idea in employing the word 'void' in the context set out in Section 536 (2), it has to be noticed that the word 'void' is not employed peremptorily and the court has been given power to order otherwise. The words "unless the court otherwise orders" are capable of diluting the rigour of the word 'void' and to choose the alternate meaning attached to that word, is the finding. 5. Learned counsel had further pointed out that, in an identical situation the Delhi High Court in the case of Reserve Bank of India V. Crystal Credit Corpor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... become void ab initio by virtue of the provisions contained in Section 537 (1) (b) of the Act. The provision is to the effect that, any sale held without leave of the court (subsequently amended as 'without leave of the Tribunal') of any properties or assets of the company after such commencement shall be void. But it has to be noted that, sub-section 2 of Section 537 carves out an exemption, providing that, nothing in Section 537 (1) will apply to any proceedings for recovery of any tax or impose or any dues payable to the Government. Contention of the learned standing counsel is to the effect that, the word "proceedings for recovery" contained in sub-section 2 will not takes in any sale, but it will only include any proceedings for finali ..... X X X X Extracts X X X X X X X X Extracts X X X X
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