Asset Sale During Liquidation Valid to Meet Statutory Dues: Delhi HC

V. K. Sharma Vs JVG Finance Limited (Delhi High Court) Conclusion: Appellant had failed to establish locus standi to challenge orders relating to asset realisation in liquidation and the material on record clearly demonstrated that liabilities of the company far exceeded available funds, making sale of assets necessary. Held: The company in liquidation (JVG Group) was subjected to regulatory action by the RBI in October 1997, restraining it from accepting deposits or alienating assets, followed by a compulsory winding-up petition in 1998 and appointment of a Provisional Official Liquidator (OL...