Search results
- So long as a bona fide purchaser properly records the transaction, the bona fide purchaser takes good title to the property despite competing adverse claims. Those parties holding competing adverse claims may bring an action only against the party who fraudulently transferred the property to the bona fide purchaser.
uk.practicallaw.thomsonreuters.com/5-383-2167?contextData=(sc.Default)
People also ask
What happens if a bona fide purchaser fraudulently transfers a property?
What happens if a property transfer is fraudulent?
Can a property be transferred with a fraudulent intention?
What are the rules regarding fraudulent transfer of property?
What is fraudulent transfer?
What is a bona fide purchaser?
In Fitzwilliam v Richall Holdings Services Ltd [2013] EWHC 86 (Ch), the High Court held that, under section 58 of the Land Registration Act 2002, a void transfer passes only the legal title. The legal title remains subject to the rights of the former proprietor as beneficial owner.
- Introduction
- The Rules Laid Down by Section 53 of Tpa, 1882
- The Purpose of Section 53 of Tpa, 1882
- Who Can Sue Under Section 53 of Tpa, 1882?
- Who Are Creditors Under The Meaning of Section 53 of Tpa, 1882?
- Nature of The Suit Under Section 53 of TPA
- Intention to Defeat Or Delay The Creditors
- Good Faith and Consideration
- Defrauding Creditors
- Applicability of Section 53 of Tpa, 1882
In simple words, fraudulent transfer of property denotes an illegal transfer of property with the malicious intent to defraud or delay the creditors. In case of fraudulent transfer of property, the debtor intentionally deprived the creditor from his lawful and just entitlements. Mostly, fraudulent transfer occurs in a debtor-creditor relationship. ...
Section 53 of TPA, 1882 is comprised of two parts. The first part prescribes the principle that, where a transferor transfers his immovable property with the intention to defeat or delay his creditors, that transfer shall be voidable at the option of any creditor so defeated or delayed. Under section 53 of TPA, 1882 the right of a bona fidepurchase...
The main objectives of section 53 of TPA, 1882 are – 1. To shield the rights of a bona fide purchaser for value; 2. To empower the creditors to avoid any transaction of immovable property made by the debtor/transferor with intent to defeat or delay the creditors; 3. To make the assets of the transferor/debtor available to the general body of credit...
A fraudulent transfer of property can be set aside by creditors only. The subsequent creditors as well as those creditors existing at the time of fraudulent transfer can sue under section 53 of TPA, 1882.
A landlord is creditor in respect of rents due to him from tenant.A Hindu wife with a claim for past-maintenance against her husband is a creditor.A Muslim wife to whom dower debt is due is a creditor.An auction-purchaser, who is not a decree-holder cannot be a creditor but a decree holder who becomes auction-purchaser of the same property is a creditor.A creditor in order to avoid a fraudulent transfer of property must file the suit in a representative capacity. The benefit will be incurred in favor of all the creditors. Order 21, Rule 63 of CPC deals with the rules of representative suit.
The intention and knowledge of the transferor are the gist of this section. Section 53 of TPA, 1882 prohibits transaction which removes property from the debtors for the benefit of the debtor. The debtor’s intention must be to benefit himself and to defeat or delay the creditors. Such intention can be proved by circumstantial evidences. From the fo...
The purchaser of the property from the transferor must prove firstly, that he had paid a fair and adequate price and secondly, that he was not a party to the fraud. He also has to prove that he acted in good faith. The standards of good faith are – 1. There must be an honest dealing between the parties; 2. The purpose of the transaction needs to be...
The debtor may prefer any creditor he chooses, to discharge the debt. But in doing so, debtor must not retain anything for his own benefit. A mere preference of one creditor to another is not fraudulent under this section. It will not amount to fraud, if debtor wants to shield some property from being proceeded against by creditors while there are ...
The section applies in the following cases – 1. Hindus and Mohammedans 2. Voluntary remissions of debts 3. Transfers of movable properties 4. Transfer by operation of law 5. Partition in joint family 6. Surrender of widow’s interest by the widow
Sep 27, 2021 · Solicitor Evveline Loh looks into fraudulent property transfers in our latest article, combining examinations of recent cases and relevant legal procedures. What does it involve and what should you be aware of? Find out here!
Apr 27, 2021 · Section 53 of the Transfer of Property Act, 1882 talks about fraudulent transfers. Every owner of a property has the right to transfer his property as he likes. But the transfer must be made with a bonafide intention. Where the transfer is made with a fraudulent intention, it means intending to defeat the interest of the creditor or interest of ...
Jul 22, 2024 · The transfer of trust property to a bona fide purchaser for value without notice extinguishes or overrides the equitable interest of the beneficiary. If a bona fide purchaser for value without notice subsequently becomes aware that the property was transferred in breach of trust, this does not resuscitate the claimant's equitable interest.
Jul 2, 2014 · A transfer of the debtor's property to another party in order to deter, hinder or defraud a creditor, or to unfairly place such property out of the reach of a creditor is a fraudulent transfer. In bankruptcy cases, a trustee is given the power to set aside or avoid these transfers under either federal law or state law.
