Section 56 in Presidency-towns Insolvency Act, 1909
56. Avoidance of preference in certain cases.
(1)Every transfer of property, every payment made, every obligation incurred, and every judicial proceeding taken or suffered by any person unable to pay his debts as they become due from his own money in favour of any creditor, with a view of giving that creditor a preference over the other creditor, shall, if such person is adjudged insolvent on a petition presented within three months after the date thereof, be deemed fraudulent and void as against the official assignee.(2)This section shall not affect the rights of any person making title in good faith and for valuable consideration through or under a creditor of the insolvent.
