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2015 (3) TMI 773 - CALCUTTA HIGH COURTCompany in liquidation - Asset purchased before initiating liquidation - Execution of Deed of Conveyance for the said asset - Held that:- The winding-up petition was filed on 15th March, 1996 and the MOU and lease agreement are dated February 1999 and March 1999. Admittedly, by the said agreement possession and lease have been granted. This will amount to variation of the terms of the 1995 agreement and disposition of property and will therefore be hit by Section 536(2) of the 1956 Act. This will render the MOU of February 1999 and the lease agreement of March 1999 void. Although a plea was taken by Counsel for the applicant that Section 536 is not mandatory but discretionary in nature and the said issue has not been raised by the Official Liquidator, the said cannot be supported as Section 536(2) of the 1956 Act makes it clear that any disposition of property after commencement of winding-up proceedings “shall” be void. Assuming that the said issue has not been raised by the Official Liquidator, the language of the section itself renders such disposition void as the same is without jurisdiction and non-est in the eye of law. - Decided against the appellant.
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