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2018 (1) TMI 1223 - HC - Companies LawApplication filed by the appellant u/s 536(2) to validate the sale of the property in its favour by the company in liquidation - Held that:- The preponderance of probability is that VGP was always aware of the fact that the state of health of Neptune has precarious and in order to save the promoter-directors of Neptune from difficulty and, perhaps, to further their interest agreed to enter into the impugned sale transactions. The impugned sale transactions were clearly motivated by the fact that the exposure, if any, of VGP could be secured by giving it the first bite in the assets of Neptune. VGP was a preliquidation creditor and therefore, by this device, cannot be allowed to steal a march over other creditors. The exposure of ARCIL as on 16.11.2010 (which is the date when OL submitted his report) is a sum of ₹ 2,18,23,829/-, and if dues of other statutory and unsecured creditors are included, the debt of Neptune balloons to ₹ 3,36,16,855.38/-.OL is yet to call for claims. There is, therefore, every likelihood that there may be other unsecured creditors whose claims qua Neptune may be outstanding. The impugned sale transaction were not, as held by the learned Single Judge, either carried out to benefit Neptune or, were transactions, which helped Neptune to conduct its day-to- day operations. Therefore, for all these reasons, we are disinclined to interfere with the impugned order. Accordingly, the appeal is dismissed.
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