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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…

Under illustration (i) to s.130 of the Transfer of Property Act, a debtor who pays the original creditor without having received notice of the transfer of the debt obtains a…

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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 the Transfer of Property Act, 1882, pays B. Whether C can sue A for the debt?

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Correct answer B

Under illustration (i) to s.130 of the Transfer of Property Act, a debtor who pays the original creditor without having received notice of the transfer of the debt obtains a valid discharge, so the payment to B is valid and the assignee, C, cannot sue the debtor, A, for the same debt again.

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