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A owes money to B, who transfers the debt to C. B then demands payment. A, not having received notice…

Section 130’s proviso protects a dealing with the debt by the debtor before the debtor receives the prescribed express notice and where the debtor is not a party to the…

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A owes money to B, who transfers the debt to C. B then demands payment. A, not having received notice of the transfer as prescribed in section 131 of the T.P. Act, 1882, pays B. The payment is:

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Answer and explanation

Correct answer A

Section 130’s proviso protects a dealing with the debt by the debtor before the debtor receives the prescribed express notice and where the debtor is not a party to the assignment. Its illustration confirms that payment by A to B without that notice remains valid against the transferee C. Notice is not generally what creates the assignment itself; it determines the debtor’s protection for this pre-notice payment.

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