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CS Professional · Insolvency and Bankruptcy - Law and Practice · Winding-Up by Tribunal

A winding-up petition against Ganga Steels Ltd was presented on 20 August 2026. In the preceding months: (A) on 25 September 2025 it transferred a godown to its director's relative for no consideration; (B) on 5 March 2026 it delivered goods to a customer in the ordinary course of business; (C) on 10 June 2026 it sold machinery to a buyer in good faith for valuable consideration; (D) on 1 July 2026 it transferred land to a related party for no consideration. Which transfers are void against the Company Liquidator under the one-year provision?

Transfers A and D are void against the Company Liquidator. Both were made within one year before the petition and were neither in the ordinary course of business nor to a good-faith purchaser for valuable consideration. B and C are protected by those exceptions.

  1. AA and D onlyCorrect
  2. BA, B and D
  3. CD only
  4. DA, C and D

Explanation

The one-year lookback runs from 20 August 2025 to presentation of the petition. A (September 2025) and D (July 2026) fall within it and are neither ordinary course nor in good faith for value, so both are void against the Company Liquidator. B is ordinary course and C is in favour of a good-faith purchaser for value, so both are protected.

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