Sale of land

Querist : Anonymous (Querist) 15 December 2011 This query is : Resolved
a director of the company has sold of the land of the private company in order to clear the NPA a/c of the company under a OTS scheme of the bank. after 2.5 years another director has filed a claim that his consent was not taken and that the sale was invalid. is the stand taken by the other director tenable in law. if not is there any case to support it

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adv. rajeev ( rajoo ) (Expert) 15 December 2011
If the director has sold the co., land without any resolution by passing in the co., meeting amounts invalid sale.

Querist : Anonymous (Querist) 15 December 2011
but then the person to whom the land has been sold has further sold the land to many individual buyers.. he is a builder developer.. can the sale be still invalidated. what is the penalty and prosecution for such an offence..

Please do reply

Thank You.

Raj Kumar Makkad (Expert) 15 December 2011
If base of the initial sale is wrong then all subsequent sales are automatically wrong. A seller cannot provide better right to the buyer.

Devajyoti Barman (Expert) 16 December 2011
Yes right...

Querist : Anonymous (Querist) 16 December 2011
what about the fact that the third party has purchased the land in good faith and for adequate consideration.

Sailesh Kumar Shah (Expert) 17 December 2011
what is the object of the company?
Is real estate?

Querist : Anonymous (Querist) 17 December 2011
yes.. there were more than 100 houses constructed and sold.. plus the land was sold for the benefit of the company.. it had an NPA which was cleared.

Sailesh Kumar Shah (Expert) 17 December 2011
So, Act of Director is right. Also there is no need of resolution.

and third party have good title.

Querist : Anonymous (Querist) 20 December 2011
is there any case law to prove that.. it would be great help.

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