TPA Section 53: Fraudulent transfer

[53. Fraudulent transfer.—(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. 1. Subs. by Act 20 of 1929, s.14, for “active prosecution”. Subs. by A.O. 1950, for “in the Provinces or established beyond the limits of the Provinces”. Subs. by Act 3 of 1951, s. 3 and the Schedule, for “within the limits of Part A States and Part C States” Subs. by A.O. 1937, for “the Governor General in Council”. The words “or the Crown Representative” Subs. by Act 20 of 1929, s. 14, for “a contentious ”. 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.]