Fraudulent preference treated as surety liability, making the preferred person's rights and liabilities match the secured interest value. A person who receives a fraudulent preference in a company's winding up is subject to the same liabilities and rights as if personally liable as a surety for the debt, to the extent of the mortgage or charge or the value of their interest, whichever is less. The interest's value is fixed at the transaction date and assessed free of encumbrances except the securing mortgage or charge. The Tribunal may determine disputes and grant relief between the payee and the surety or guarantor, and may bring the surety or guarantor in as a third party; this extends to non-monetary transactions with necessary modifications.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Fraudulent preference treated as surety liability, making the preferred person's rights and liabilities match the secured interest value.
A person who receives a fraudulent preference in a company's winding up is subject to the same liabilities and rights as if personally liable as a surety for the debt, to the extent of the mortgage or charge or the value of their interest, whichever is less. The interest's value is fixed at the transaction date and assessed free of encumbrances except the securing mortgage or charge. The Tribunal may determine disputes and grant relief between the payee and the surety or guarantor, and may bring the surety or guarantor in as a third party; this extends to non-monetary transactions with necessary modifications.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
