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2008 (2) TMI 623 - HC - Companies LawAvoidance of transfer after commencement of winding up - Held that:- The relief prayed for in the present application cannot be granted. However, role of respondents Nos. 2 and 3 and allegations made therein are required to be considered in this application. Admittedly, both the irrevocable power of attorneys were executed after the date of winding up order. It is practically impossible to presume that respondents Nos. 2 and 3 are not aware about the winding up order. Respondent No. 2 has executed power of attorney way back in 2004, i.e., after more than 4 years from the date of winding up order. It was nowhere stated before the court taking up the criminal matter that the property in question belongs to the company and company went into liquidation. The ex-management has no right to mortgage the said property of the company in liquidation and despite this fact the property was mortgaged as security to the applicant-bank and on that ground, respondent No. 2 has obtained bail from this court. It, therefore, appears that respondent No. 2 has misled the court at the time of obtaining bail and true and correct facts were not presented before the court. Since this court is not seized with the said criminal matter the court is not passing any order adverse to respondents Nos. 2 and 3. However, it is open for the applicant-bank to take note of this order and take out appropriate proceeding, if it thinks proper. Likewise, respondent No. 3 was the director of the company and he has signed the power of attorney in 2001, i.e., after the date of winding up order. He is well educated and qualified person. He is supposed to know that the company went into liquidation and it is not proper for him to execute power of attorney whereby the powers are given to the bank to sell the property of the company in liquidation. The bank's version that it came to know only when an advertisement has appeared in the newspaper is also not satisfactory.
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