Section 18 in The M.P. Adjustment and Liquidation of Industrial Workers' Debt Act, 1936
18. Avoidance of preference to certain creditors over other creditors.
- Every transfer of assets, every payment made, every obligation incurred, and every judicial proceeding taken or suffered by any industrial worker, who is unable to pay from his own money his debts as they become due in favour of any creditor, with the intention of giving that creditor a preference over other creditors, shall, if an order of adjudication is passed on a liquidation petition presented by him within three months after the date thereof, be deemed fraudulent and void as against the receiver and shall be annulled by the Court.
