Fraudulent undervalued transactions: asset restoration and protection of claimants, while preserving good-faith third-party interests. Transactions defrauding creditors are addressed where a corporate debtor enters into an undervalued transaction deliberately to keep assets beyond the reach of claimants or to adversely affect their interests. If the Adjudicating Authority is satisfied, it may restore the position as it existed before the transaction and protect the victims of such transactions. The provision also safeguards good-faith third-party acquisitions and benefits taken for value without notice, subject to the stated exceptions.
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 undervalued transactions: asset restoration and protection of claimants, while preserving good-faith third-party interests.
Transactions defrauding creditors are addressed where a corporate debtor enters into an undervalued transaction deliberately to keep assets beyond the reach of claimants or to adversely affect their interests. If the Adjudicating Authority is satisfied, it may restore the position as it existed before the transaction and protect the victims of such transactions. The provision also safeguards good-faith third-party acquisitions and benefits taken for value without notice, subject to the stated exceptions.
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