https://www.taxtmi.com/caselaws?id=6698 A voluntary settlement is not avoided merely because the transferor later becomes indebted; a creditor must show fraudulent intent at the time of execution or circumstances showing insufficient means to meet existing debts or an intention to place property beyond future creditors. Here, the transferor had no substantial debts when the gift was made, retained other assets and bank balances, and the later income-tax liability was neither existing nor reasonably anticipated. The subsequent sale of other lands did not prove a design to defeat future creditors, and the surrounding circumstances pointed to a proposed migration rather than fraud. The gift deed was therefore not proved voidable at creditors' instance. en-us Tue, 22 Sep 1964 00:00:00 +0530 Sun, 01 Feb 2009 11:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6698 A voluntary settlement is not avoided merely because the transferor later becomes indebted; a creditor must show fraudulent intent at the time of execution or circumstances showing insufficient means to meet existing debts or an intention to place property beyond future creditors. Here, the transferor had no substantial debts when the gift was made, retained other assets and bank balances, and the later income-tax liability was neither existing nor reasonably anticipated. The subsequent sale of other lands did not prove a design to defeat future creditors, and the surrounding circumstances pointed to a proposed migration rather than fraud. The gift deed was therefore not proved voidable at creditors' instance. Case-Laws Income Tax Tue, 22 Sep 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6698