Site navigation

Consider the following statements in the context of the Transfer of Property Act, 1882:- In every…

A transfer intended to defeat or delay creditors is voidable at the option of an affected creditor. Section 53 nevertheless protects the rights of a transferee who acts in…

Choose your answer

Consider the following statements in the context of the Transfer of Property Act, 1882:-
In every transfer of immoveable property made with intent to delay the creditors of the transferor,
(i) The rights of a transferee in good faith and for consideration shall not be impaired.
(ii) The transfer shall be voidable at the option of any creditor so delayed.
(iii) The creditor so delayed can take possession of the property.
(iv) The creditor so delayed can bring the property to sale without intervention of the court.
Which of the above statements are correct?

Select one answer
Answer and explanation

Correct answer D

A transfer intended to defeat or delay creditors is voidable at the option of an affected creditor. Section 53 nevertheless protects the rights of a transferee who acts in good faith and gives consideration. The creditor's right to challenge the transfer does not itself confer possession of the property or a power to sell it without the court.

Practice for these exams

Related question papers

Related exam syllabi

Related questions in this topic