JAI NARAIN PARASRAMPURIA(DEAD) vs PUSHPA DEVI SARRAF

The Supreme Court addressed the validity of a sale agreement concerning property owned by a company, emphasizing the necessity of adherence to corporate governance principles under the Companies Act, 1956. The Court held that the agreement for sale executed by the directors of the company was valid, as it was duly authorized by a resolution, and the payment made was in accordance with the terms of the agreement. The Court also ruled that the subsequent agreement executed in favor of a third party was a sham, thereby upholding the appellants' claim for specific performance of the original agreement.