Which of the following case decided by the Privy Council relates to 'fraudulent transfer' ?
In Musahar Sahu v. Hakim Lal (1915), the Privy Council held that a transfer by a debtor to pay off one creditor in preference to others is not by itself a fraudulent…
Choose your answer
Which of the following case decided by the Privy Council relates to 'fraudulent transfer' ?
Answer and explanation
Correct answer A
In Musahar Sahu v. Hakim Lal (1915), the Privy Council held that a transfer by a debtor to pay off one creditor in preference to others is not by itself a fraudulent transfer under section 53, as long as it is a genuine transaction and the debtor keeps no benefit.
Middleton v. Pollock is an English case and Union of India v. Rajeshwari & Co. a Supreme Court case, so neither is a Privy Council decision on the point and the catch-all is wrong.
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