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2004 (4) TMI 312 - SC - Companies LawWinding up - prayer under section 536(2) was to allow the company to execute documents creating a first charge over the company’s properties in favour of the appellants - Held that:- Appeal partly allowed. The company’s properties as of today are not properties belonging to the company. Apart from it being a practical impossibility to allow the appellant’s prayer at this stage, the Division Bench did not err in rejecting the application of the appellant at least insofar as it pertained to the loan transactions prior to 10-7-1986. There is no explanation forthcoming from the appellant as to how these advances were made for over a period of ten years without obtaining any security. The appellant ultimately sought to create securities in respect of these transactions only in 1990. The Division Bench was also correct that the grant of leave under section 536(2) would not be appropriate after this delay. The High Court erred in setting aside the learned Single Judge’s order even in respect of the post 10-7-1986, loans on the simple ground that this was beyond the scope of the appellant’s appeal. The appellant could not be in a worse position by having preferred the appeal from the order of the learned Single Judge.
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