Sale deed contrary to Injunction is not a valid deed even though the applicant entitle to invoked Court jurisdiction under Sec 536(2) of Companies Act 1956

In view of the order dated 23rd August, 2011 passed in Co. Appl. 1633/2011 in Co. Pet. No. 265/1998 as well as the fact that sale deeds in the present applications have been executed and some payments have been paid only after appointment of Provisional Liquidator, this Court finds no infirmity in the decision rendered by the One Man Committee. It is pertinent to mention that the sale deeds have been executed contrary to a specific injunction order dated 05th June, 1998 and the payments made by the applicants after the appointment of Provisional Liquidator have not been received by the Official Liquidator. Further, no transparent procedure of sale/auction has been followed as is normally done in cases after appointment of Provisional Liquidator. Consequently, this Court is of the opinion that even though the applicants are entitled in law to invoke the jurisdiction of the Court under Section 536(2) of the Companies Act, 1956, yet keeping in view the totality of the facts of the case, this Court is not inclined to grant any relief under the said Section.

HIGH COURT OF DELHI

CO. APPLS. 2274/2011, 2280/2011, 2283/2011, 2286/2011, 2289/2011, 2292/2011, 2301/2011, 2304/2011, 2307/2011 & 2313/2011 IN CO. PET. 265/1998

Reserve Bank of India Vs M/s. JVG Finance Ltd.

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