In Musahar Sahu v. Lala Hakim Lal (1915), how did the Privy Council treat a conveyance made for genuine…
The Privy Council upheld the conveyance to Hakim Lal because it was a genuine transaction for consideration. In the circumstances of that case, the fact that it preferred…
Choose your answer
In Musahar Sahu v. Lala Hakim Lal (1915), how did the Privy Council treat a conveyance made for genuine consideration in satisfaction of an existing debt?
Answer and explanation
Correct answer A
The Privy Council upheld the conveyance to Hakim Lal because it was a genuine transaction for consideration. In the circumstances of that case, the fact that it preferred one creditor over another did not by itself establish fraud. The Board did not treat the separate fraudulent conveyance as decisive of this transaction.
Option feedback
Option A
The Privy Council upheld the genuine conveyance. A preference alone did not establish fraudulent intent on those facts.
Option B
The Board distinguished a genuine payment of a debt from a scheme to defeat or delay creditors.
Option C
The Board did not give creditors a general right to set aside earlier payment of another genuine creditor.
Option D
The Board treated the two conveyances separately. The defect in one did not establish fraud in the other.
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