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'A' owes money to B, who transfers the debt to C. B then demands the debt from A, who, not having…

Illustration (i) to section 130 states this debt-assignment example. Where the debtor has not received the prescribed express notice and pays the original creditor, the…

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

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Correct answer D

Illustration (i) to section 130 states this debt-assignment example. Where the debtor has not received the prescribed express notice and pays the original creditor, the payment is valid and the assignee cannot recover the same debt again from that debtor. Assignment’s effectiveness between transferor and transferee is distinct from the statutory protection of such dealings before notice.

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