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CHAPTER II OF TRANSFERS OF PROPERTY BY ACT OF PARTIES · (B) Transfer of Immoveable Property

Section 53: Fraudulent transfer

The Transfer of Property Act, 1882

1[(1) Every transfer of immoveable property made with intent to defeat or delay the creditors of the transferor shall be voidable at the option of any creditor so defeated or delayed.

Nothing in this sub-section shall impair the rights of a transferee in good faith and for consideration.

Nothing in this sub-section shall affect any law for the time being in force relating to insolvency.

A suit instituted by a creditor (which term includes a decree-holder whether he has or has not applied for execution of his decree) to avoid a transfer on the ground that it has been made with intent to defeat or delay the creditors of the transferor, shall be instituted on behalf of, or for the benefit of, all the creditors.

(2) Every transfer of immoveable property made without consideration with intent to defraud a subsequent transferee shall be voidable at the option of such transferee.

For the purposes of this sub-section, no transfer made without consideration shall be deemed to have been made with intent to defraud by reason only that a subsequent transfer for consideration was made.]

Footnotes in the official text

  1. 1.Subs. by s. 15, ibid., for s. 53.

Questions on this section

5 questions in 20 of our papers cite Section 53. Try these from the free papers:

  1. 1. Consider the following statements regarding Section 53(1) of the Transfer of Property Act, 1882: 1. Nothing in Section 53(1) impairs the rights of a transferee in good faith and for consideration. 2. Section 53(1) applies to a transfer of moveable as well as immoveable property made with intent to defeat or delay creditors. 3. Nothing in Section 53(1) affects any law for the time being in force relating to insolvency. Which of the statements given above is/are correct?

  2. 2. Consider the following statements regarding Section 53 of the Transfer of Property Act, 1882: 1. A suit by a creditor to avoid a transfer on the ground that it was made with intent to defeat or delay creditors must be instituted on behalf of, or for the benefit of, all the creditors. 2. A gratuitous transfer is deemed to have been made with intent to defraud a subsequent transferee merely because a later transfer for consideration was made. 3. For such a suit, the term "creditor" includes a decree-holder, whether or not he has applied for execution of his decree. Which of the statements given above is/are correct?

Practise questions on Transfer of Property Act