ADMINISTRATOR, MCC FINANCE LTD. Vs. RAMESH GANDHI

JUDGEMENT

(1.) THE application has been filed for an order declaring the transaction between the applicant -company and the respondent by name Sri Ramesh Gandhi is null and void in terms of Sections 125, 531 and 531A of the Companies Act and for a direction to the respondent to return the entire 61,740 equity shares of M/s. Divi's Laboratories Ltd. along with the related documents, dividends received and any other benefits received in respect of the said shares and to restrain the respondent from selling the said shares, if they have not been already sold.

(2.) THE following are the averments in the application :

(3.) MR . N.S. Varadachari, learned counsel for the respondent in reply would submit that as the shares belonged to MSL, which was holding them in Divi's Laboratories Ltd., the shares cannot be said to be the assets of the applicant -company. In the absence of the same, the relief sought in this application is liable to be rejected. He would further submit that in any case C. P. No. 319 of 1999 was only closed and the winding up order was passed only in C. P. No. 496 of 2000. The said petition was filed on August 10, 2000, which is after the tripartite agreement. Hence, the provisions of Section 536(2) cannot be invoked. He would also submit that insofar as invoking the provisions of Sections 531 and 531A of the Act, there is no fraudulent preference, as the shares cannot be the assets of the applicant -company and in that case the transaction cannot be questioned, more particularly, on the ground of fraudulent preference under Section 531 and avoidance of voluntary transfer under Section 531A of the Act.