Idbi Bank Limited Through Dgm (Legal) vs The Official Liquidator, Office Of The ...

The Supreme Court addressed the appeals by IDBI Bank against the High Court's dismissal of its application for executing a sale deed for property owned by Kothari Orient Finance Limited (KOFL) amidst winding up proceedings under Section 433(e) and (f) and Section 434 of the Companies Act, 1956. The Court held that the agreement to sell constituted a fraudulent preference under Section 536(2) of the Companies Act, as it favored the Petitioner over other creditors. Consequently, the Supreme Court upheld the High Court's decision, affirming the dismissal of the execution application and the continuation of winding up proceedings against KOFL.