Section 32 in Telangana Jagirdars Debt Settlement Act, 1952
32. Fraudulent alienation or encumbrances void.
(1)If in the course of the hearing of an application under section 11, the Board finds that the debtor has made an alienation of property or created any encumbrances thereon with intent to defeat or delay any of his creditors, the Board shall by notice, summon the debtor and the person in whose favour the alienation or encumbrance is made or created to appear before it on a day to be specified in the notice.(2)On the day specified in the notice or such other day to which the hearing may be adjourned the Board shall hear the parties and if it is satisfied that the alienation was made or the encumbrance was created with intent to defeat or delay any of the creditors of the debtors, the Board shall declare the alienation or encumbrance to be void.(3)Nothing in this section shall impair the rights of an alienee or the holder of an encumbrance in good faith and for valuable consideration.
