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1986 (7) TMI 84 - SC - Income TaxWhether sale deeds of immovable properties and transfer of movables belonging to the respondent limited company in favour of the respondent firm are invalid, inoperative and not binding on the appellant and other creditors of the respondent limited company? Held that:- It has been found by the High Court that the sale was effected for the purpose of discharging the debts payable by the company. Once it is also found that the consideration was not inadequate, it is immaterial, as the High Court has observed, that the transfer was effected in favour of a person who was not a creditor. It has been clearly found that the sale proceeds were employed for paying off the creditors of the company. It appears that in consequence of the impugned transfer effected by the company, the appellant has been unable to recover a sum of ₹ 28,240 assessed as income-tax in October, 1961. . It rested its suit on section 53 of the Transfer of Property Act. Having regard to the findings rendered by the High Court on the consideration of material on the record and upon an interpretation of section 53 which that provision has uniformly received, this appeal cannot be sustained. The appeal dismissed.
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