into by the company in liquidation with the purchasers amount to fraudulent preference as set out under Section 531 of the Companies Act and interpreted ... transactions between the company in liquidation and the purchasers amount to fraudulent preference in the eye of law. Therefore, the property in question, namely flat
facts are quite different. According
to him, the question of fraudulent preference cannot be considered by the Debt
Recovery Tribunal. Further more, if a sale ... Services Limited Vs. Reserve Bank of India6 , whereunder the instances
of fraudulent preference or transfer have been considered. He also relied upon
another decision reported
playing in the field, if any. Section 531 is made for fraudulent preference. In respect of any transfer of property movable or immovable, delivery ... adjudged insolvent, would be deemed in his insolvency a fraudulent preference, shall in the event of a company being wound up, be deemed a fraudulent
In Re: Popular Bank Ltd. (In ... vs Unknown on 29 October, 1968
Author: V. Balakrishna
transfer of property. The said provision reads as under :-
" 328. Fraudulent preference. - (1) Where a company has
given preference to a person ... application, the Tribunal, if satisfied that,
such transaction is a fraudulent preference may order as it
may think fit for restoring the position to what
order of adjudication is founded is a transfer
amounting to a fraudulent preference, the transferee
cannot so long as the order of adjudication stands,
question ... that finding, namely, that the transfer was a
fraudulent preference and that, therefore, in an
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Appl
favour of applicant-Co.
S.531 of Co. Act relating to fraudulent preference, & S.531A relating to avoidance of voluntary transfer, being relevant ... issue, read ad infra:
531. FRAUDULENT PREFERENCE.-
(1) Any transfer of property, movable or immovable, delivery of goods, payment, execution or other act relating
even against the principal amount, the above transaction amounts to a fraudulent preference against the creditors and other contributories of the respondent company.
3. This ... recover any money or asset which is allegedly part of a fraudulent preference. Both Dua Associates and amices Jurisdiction filed the reply purporting
petitioner in the insolvency petition was that the mortgage was a fraudulent preference within the meaning of Section 6(c) of the Provincial Insolvency ... respondents contended that the mortgage did not amount to fraudulent preference and that it was not an act of insolvency. The further ground taken
that was under consideration was whether the transaction amounted to a fraudulent preference. The corresponding section of the Presidency Towns Insolvency Act defining the acts ... enactment for the time being in force, be void as a fraudulent preference if he were adjudged an insolvent".
It will thus be seen
