Legal Question in Civil Rights Law in India

transfer of property to defraud creditors

Mr. X acquired the property on his wife name Mrs.Y and lived along with her and two sons Mr.A and Mr.B. Subsequently Mr. X died. Mr. Z advanced a loan to Mr.A wherein Mrs. Y stood as guarantor. Mr. A made a default in repayment and subsequently a money suit is initiated against Mrs.Y and Mr.A. Subsequently Mrs.Y transferred the property onto the name of Mr.B in the form of gift deed. The subject property is acquired in benami by Mrs.Y from Mr.X and Mr.A gave a clear undertaking to Mr.Z that in event of failure of loan amount, Mr.Z shall be entitled to take over the immovable property. What are the various remedies available to Mr.Z in Transfer of Property Act to realise the advanced amount? Please advise.


Asked on 10/12/08, 3:12 pm

2 Answers from Attorneys
Nasir Butt Nasir Law Associates

Re: transfer of property to defraud creditors

View of Mr. Sudershan Goel is well founded.

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Answered on 11/02/08, 1:35 pm
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: transfer of property to defraud creditors

An appropriate should be given after reading the document / undertaking you say A had given to Z.

The transfer of property by Y in favour of B can be challenged being voidable.

Z should file a civil suit for recovery of his money AND alternatively for (a) challenging transfer of property in name of B; and (b) claiming the property in lieu of money on the basis of undertaking furnished by A.

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Answered on 10/12/08, 8:21 pm


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