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I had a laptop where I had logged in using my Microsoft Account. However, it needed some repair, as it was not powering on. When I took it to an authorized service center (outside warrenty), the repair value was insane. So I decided to buy a new one, and sell the former (defective) one for a low price.
Is it possible to log out of Microsoft Account of that defective laptop remotely, as the laptop is not switching on ?
Yes. You will want to remove the device from your Microsoft account.
You can do that from a web browser by navigating to http://account.microsoft.com/devices
For detailed instructions visit this Microsoft Support page: https://support.microsoft.com/en-us/windows/remove-a-device-from-your-microsoft-account-dda2c664-9d57-e5db-acf0-67f14d5fdf3c
Have a great day.
