S. 37 Provincial Insolvency Act | Only Valid Sales Made During Insolvency Stand Protected After Insolvency Annulment: Supreme Court

The Supreme Court clarified that under Section 37 of the Provincial Insolvency Act, only valid sales executed during insolvency proceedings are protected even after the annulment of insolvency. The Court emphasized strict adherence to procedural and statutory requirements for transactions made during insolvency to ensure their protection. This ruling provides clarity to stakeholders about the validity of transactions executed during insolvency and safeguards rights of parties involved, reinforcing legal certainty in complex insolvency matters and preventing misuse or retroactive disputes over annulled insolvency transactions.