Where there is no material on record to show that the preference shares were not subscribed by the erstwhile Financial Corporation, and those preference shares were offered as security for the loan availed from it, then the plea of the appellant that those shares were a part of 'Corporate Debt Restructuring' (on transfer of debt by an assignment deed) could not be entertained, and sale of those shares by the Financial Corporation was not impeachable on the basis of material on record, because no provision in the Companies Act, or the Indian Contract Act, prohibit the owner of such preference shares to deal with the same. Prag Bosimi Synthetics Ltd. vs. 3A Capital Ltd. and Others. MANU/GH/0328/2017
IBC :
Moratorium shall only prohibit the action against the properties reflected in the balance sheet of the Corporate Debtor and shall have no application on the properties beyond the ownership of the Corporate Debtor. Consequently, the order of the Court directing the court commissioner to take over the possession shall not fall within the clutches of moratorium. Schweitzer Systemtek India (P.) Ltd. vs. Phoenix ARC (P.) Ltd. MANU/NC/0795/2017
(NOTE : The above judgment has been upheld by the Hon'ble NCLAT)
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IBC :
Moratorium shall only prohibit the action against the properties reflected in the balance sheet of the Corporate Debtor and shall have no application on the properties beyond the ownership of the Corporate Debtor. Consequently, the order of the Court directing the court commissioner to take over the possession shall not fall within the clutches of moratorium. Schweitzer Systemtek India (P.) Ltd. vs. Phoenix ARC (P.) Ltd. MANU/NC/0795/2017
(NOTE : The above judgment has been upheld by the Hon'ble NCLAT)
Company Secretary GAURAV SHARMA+919990694230 Connect on Watts App with Gaurav Email us [email protected] Submit your guest articles for our website click here we will publish it Subscribe our Email updates like other 100,000 Members, Free/Easy/Comfortableway
