Section 165 - Preference transactions.

Preference transactions: trustee can seek orders to void transfers and restore assets to the bankruptcy estate.

The bankruptcy trustee may apply to set aside preference transactions entered into within specified pre-bankruptcy periods; relief is available where the transaction contributed to triggering bankruptcy. The Adjudicating Authority may declare the transaction void, vest transferred property in the estate, and make orders to restore the pre-preference position. A rebuttable presumption of influencing desire applies where the recipient was an associate (other than solely by employment). A transaction is preferential if it puts a creditor, surety or guarantor in a better position on bankruptcy than they would otherwise have been.