Raghav Arora 05 January 2021

Fraudulent transfer - contributory negligence

Sections like Section 53 of TP Act protect Transferees in good faith and for consideration.

I want to ask if the transferees in these conditions are always safe or doctrines of Contributory negligence and constructive notice apply to them as well? Are there cases where the transferees are absolutely safe?

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G.L.N. Prasad (Retired employee.) 06 January 2021

It is difficult to offer any guidance without precise and specific relevance and circumstances. Only local advocate can guide you on studying facts, circumstances and such negligence levels.

raashid Wafai 06 January 2021

Hi, the law protects an innocent buyer who has been defrauded as you rightly said. But, the buyer can't seek the benefit if he had the means to obtain knowledge regarding the subject matter with ordinary diligence under Indian Contract Act.

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