Undervalued transactions: trustee can seek voiding and vesting orders to restore the bankrupt's estate where transfers impaired the estate. The bankruptcy trustee may apply to the Adjudicating Authority to void or set aside transactions that occurred within the prescribed pre-bankruptcy period and caused the bankruptcy process to be triggered; transactions with an associate in that period are deemed undervalued. The Authority may declare such transactions void, vest transferred property in the trustee, and issue restorative orders. A defence that a transaction occurred in the ordinary course of business bars voiding, except for transactions deemed by association. An undervalued transaction includes gifts, transfers for no consideration, marriage consideration, or substantially inadequate consideration.
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.
Undervalued transactions: trustee can seek voiding and vesting orders to restore the bankrupt's estate where transfers impaired the estate.
The bankruptcy trustee may apply to the Adjudicating Authority to void or set aside transactions that occurred within the prescribed pre-bankruptcy period and caused the bankruptcy process to be triggered; transactions with an associate in that period are deemed undervalued. The Authority may declare such transactions void, vest transferred property in the trustee, and issue restorative orders. A defence that a transaction occurred in the ordinary course of business bars voiding, except for transactions deemed by association. An undervalued transaction includes gifts, transfers for no consideration, marriage consideration, or substantially inadequate consideration.
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