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2009 (5) TMI 537 - HC - Companies LawWinding up - property sold without reference to the Official Liquidator or the Company Court - Held that:- The entire security was lost to the company for satisfaction of the creditor who held the property as his exclusive security. Even in the absence of OTS, the company could have realized the money by sale of the property and if there was still a shortfall and if there had been any personal liability of the Directors, the personal remedy may have been available for the creditor. In such an event, the OTS would have meant saving their own skin against personal liability but obtained no benefit to the company or its other creditors. About the value of the property itself, learned counsel for the applicant suggested that he would have no objection if the property was to be assessed to be valued afresh to satisfy the conscience of the Court that at the relevant point of time, the property had been properly valued. Thus do not propose examine the adequacy of the sale consideration since have already held that there was no bona fides in selling the property that resulted in the only immovable asset belonging to the company being lost. Appeal dismissed.
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