#sham transaction

The High Court of Madhya Pradesh set aside a trial court's dismissal of a specific performance suit, ruling that a genuine agreement existed despite defendants' denial and subsequent sham sale to defeat the contract. The court emphasized that sham transactions executed within weeks of the agreement were acts of fraud, entitling the plaintiff to specific performance.

Bombay High Court invalidates a 99-year lease agreement for lack of evidence of consideration and failure to obtain requisite permissions under tribal land laws. The ruling reinforces that mutation entries cannot validate a sham transaction, impacting land disputes involving Adivasi properties.

NCLAT rules that inter-group fund transfers lacking genuine credit disbursal or repayment obligation fail the 'financial debt' test under Section 5(8) of the Insolvency and Bankruptcy Code. The ruling shields corporate debtors from IBC proceedings where transactions are sham or circular, reinforcing the need for commercial substance in financial creditor claims.

Supreme Court holds that registered sale deeds carry a strong presumption of validity; mere allegations of inadequacy or non-mutation cannot override clear documentary evidence.