Insolvency petition
VANGARI GANGA RAJAM
(Querist) 07 April 2012
This query is : Resolved
my client has transferred his self acquired property three months back to his son's wife's sister's husband through a registered sale deed after receiving full and fair considertion from him.
now my client wants to file a Insolvency petition begging to declare him as a Insolvant. Whether the previously transferred property sale deed will cancelled by the court in order to repay the debts of my client ? is there any exception in this regard.
ajay sethi
(Expert) 07 April 2012
court can declared previous sale as void
54 . 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 creditors, 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 receiver, and shall be annulled by the Court.
(2) This section shall not affect the rights of any person who in good faith and for valuable consideration has acquired a title through or under a creditor of the insolvent.
[1] 54A.By whom petitions for annulment may be made.- A petition for the annulment of any transfer under section 53, or of any transfer, payment, obligation or judicial proceeding under section 54, may be made by the receiver or, with the leave of the Court, by any creditor who has proved his debt and who satisfies the Court that the receiver has been requested and has refused to make such petition. 55.Protection of bona fide transactions.- Subject to the foregoing provisions of this Act with respect to the effect of insolvency on an execution, and with respect to the avoidance of certain transfers and preferences, nothing in this Act shall invalidate in the case of an insolvency-
(a) any payment by the insolvent to any of his creditors;
(b) any payment or delivery to the insolvent;
(c) any transfer by the insolvent for valuable consideration; or
(d) any contract or dealing by or with the insolvent for valuable consideration:
Provided that any such transaction takes place before the date of the order of adjudication, and that the person with whom such transaction takes place has not at the time notice of the presentation of any insolvency petition by or against the debtor.
ajay sethi
(Expert) 07 April 2012
59A.Power to require information regarding insolvent's property.- (1) The Court, if specially empowered in this behalf by an order of the State Government, or any officer of the Court so empowered by a like order, may, on the application of the receiver or any creditor who has proved his debt, at any time after an order of adjudication has been made, summon before it in the prescribed manner any person known or suspected to have in his possession any property belonging to the insolvent, or supposed to be indebted to the insolvent, or any person whom the Court or such officer, as the case may be, may deem capable of giving information respecting the insolvent or his dealings or property, and the Court or such officer may require any such person to produce any documents in his custody or power relating to the insolvent or to his dealings or property.
(2) If any person so summoned, after having been tendered a reasonable sum, refuses to come before the Court or such officer at the time appointed, or refuses to produce any such document, having no lawful impediment made known to and allowed by the Court or such officer, the Court or such officer may, by warrant, cause him to be apprehended and brought up for examination.
(3) The Court or such officer may examine any person so brought before it or him concerning the insolvent, his dealings or property and such person may be represented by a legal practitioner.
VANGARI GANGA RAJAM
(Querist) 07 April 2012
sir, it is still confusion, that whether a bonafide purchaser who purchases the property from the insovent will be protected by the law.
SAINATH DEVALLA
(Expert) 07 April 2012
Dear Rajam,
Your client has not transferred the property but sold to his relative.Technicalities make a lot of difference.AS far as insolvency is concerned Mr.Ajay Sethi has clearly eloborated everything.
V R SHROFF
(Expert) 08 April 2012
As far as insolvency is concerned Mr.Ajay Sethi has clearly eloborated everything.
I agree.
Bonafide purchaser who in good faith and for valuable consideration will be protected.
Should wait for 3 months before applying insolvency.
