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Under section 53(1) of the Transfer of Property Act, 1882, a transfer of immovable property is made…

Section 53(1) makes a transfer intended to defeat or delay the transferor's creditors voidable at the option of a creditor so affected. The subsection preserves the rights…

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Under section 53(1) of the Transfer of Property Act, 1882, a transfer of immovable property is made with intent to defeat or delay the transferor's creditors. Assume no protected good-faith transferee for consideration or insolvency rule affects the case. What is the effect?

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Answer and explanation

Correct answer A

Section 53(1) makes a transfer intended to defeat or delay the transferor's creditors voidable at the option of a creditor so affected. The subsection preserves the rights of a good-faith transferee for consideration and preserves applicable insolvency law.

Option feedback

Option A

Section 53(1) gives the creditor who was defeated or delayed the option to avoid the transfer.

Option B

The statutory consequence is voidability at the affected creditor's option. It does not make the transfer automatically void.

Option C

Section 53(1) confers the option on the affected creditor, rather than the transferor.

Option D

The statutory protection is for creditors who are defeated or delayed. Their participation in the transfer is not required.

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