question was held by the lower Court not to be a fraudulent preference within the meaning of Section 54 of the Provincial Insolvency Act which ... held an follows:
The question whether there has been a fraudulent preference depends not upon the mere fact that there had been a preference
held that by the said transfers he has given fraudulent preference to some of the creditors as against the petitioning creditor and thereby committed ... enactment for the time being in force, be void as a fraudulent preference if he were adjudged an insolvent:"
A careful reading
Pacific Convergence Coproation Ltd. vs Data Access (India) Limited on 18 November, 2005
Equivalent citations
give those creditors preference over the others. The essence of fraudulent preference is thus the giving of an improper benefit to a few, leading ... applies to companies under Sections 531 and 531A .
9. To establish fraudulent preference under Section 531 , it is not enough to show that preference
principal ground that the subject transaction amounted to a fraudulent preference.
6.1. UWB/IDBI, being aggrieved, preferred an appeal with the Division Bench, which ... aside by this Court, by holding it to be a fraudulent preference in favour of UWB/IDBI, the attempt, now made is to neutralize
commencement of the Companies (Amendment) Act, 1960 (65 of 1960).
531. Fraudulent preference--(1) Any transfer of property, movable or immovable, delivery of goods, payment ... adjudged insolvent, would be deemed in I his insolvency a fraudulent preference, shall in the event of the company being I wound up, be deemed
Section 533 Liabilities and rights The Companies
of certain Act, 1956
fraudulently
preferred persons
Section 536(2) Avoidance of The Companies
transfers, etc., after ... rate
which was prevailing at that time, therefore, no case of fraudulent
preference is made out against them as they are bonafide
purchasers
Company being wound up, be deemed a fraudulent
preference of its creditors and be invalid accordingly.
37. Section 531 of the Companies Act reads ... under:
"531. FRAUDULENT PREFERENCE (1) Any transfer
of property, movable or immovable, delivery of
goods, payment, execution or other act relating to
property made
months of the commencing of winding up
proceedings would constitute a fraudulent preference by the
company of its creditors and would be invalid under section ... Expenses Sub Account would
amount to a fraudulent preference within the meaning of section
531 of the Companies Act, 1956. Subsequently, in the affidavit
months of the commencing of winding up
proceedings would constitute a fraudulent preference by the
company of its creditors and would be invalid under section ... Expenses Sub Account would
amount to a fraudulent preference within the meaning of section
531 of the Companies Act, 1956. Subsequently, in the affidavit
