The Bombay High Court has made a decision in an important case involving the closing down of Navinon Ltd., saying that a property transfer is not valid. This decision is about a transfer agreement made in 2019, long after the company started the process of shutting down.
Navinon Ltd. was ordered to shut down on December 16, 2005. A person called the Official Liquidator was put in charge of managing the company's assets. However, a transfer agreement dated May 16, 2019, moved a property in Boisar, Palghar, to Zulfikar Akbarali Khoja and Nilesh Indulal Ponda.
The property is located in Tarapur Industrial Area, Boisar. Zulfikar Akbarali Khoja and Nilesh Indulal Ponda said they were approached by Atulya Mafatlal and Manohar Sankhe in 2017 to transfer the property. They announced it publicly and claimed no one objected.
"The transfer agreement was signed on 16th May 2019 by Ravindra Palkar on behalf of Navinon as its representative."
Mr. Mutahhar Khan, speaking for the Official Liquidator, argued that the transfer was not valid because it happened after the company began shutting down on November 3, 2001. He stressed that any property deal after this date is not valid unless the court approves it.
"Mr. Khan said that the deal should be seen as not valid and cannot be approved."
Mr. Shah, speaking for Zulfikar Akbarali Khoja and Nilesh Indulal Ponda, argued they were genuine buyers who did not know about the company's closure. He claimed they acted honestly and paid a fair price. He also asked for compensation if the transfer was canceled.
"Mr. Shah said that the Applicants were genuine buyers and thus should not lose the rights they got under the transfer agreement."
Justice Arif S. Doctor ruled against Zulfikar Akbarali Khoja and Nilesh Indulal Ponda, saying the transfer agreement is not valid. The court found no proof that the deal helped Navinon or its creditors. It was considered dishonest, with no payment made to Navinon.
The court ordered Zulfikar Akbarali Khoja and Nilesh Indulal Ponda to give the property back to the Official Liquidator and allowed them to make any claims with the Liquidator. The decision emphasizes the strict enforcement of rules when a company is closing to protect creditors and stop unauthorized property transfers.
"The Official Liquidator’s Report dated 15 February 2023 is allowed, and the request to approve the disputed transfer agreement is denied."
