NARENDRA BAHADUR TANDON vs SHANKERLAL (SINCE DECEASED) BY LRS. AND ANR.

The Supreme Court held that the voluntary liquidator of a company, after its dissolution, lacked the authority to execute a deed of sale for leasehold interest, as per the principles of company law. The Court found that the plaintiffs were estopped from claiming rights over the land since they had accepted rent from the official liquidator, thereby validating the transfer to the defendant. The appeal was allowed, overturning the High Court's decision which had ruled otherwise, affirming that the leasehold interest had passed to the defendant despite the initial lack of a formal deed of transfer.