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Section 52: Avoidance of preference in certain cases

Bankruptcy Act · PART III: ADMINISTRATION OF PROPERTY

consolidated text (as at 2000). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.

52. Avoidance of preference in certain cases (1) Every conveyance or transfer of property, or charge made thereon, every payment made, every obligation incurred, and every judicial proceeding taken or suffered by any person unable to pay his debts as they become due from his own money in favour of any creditor, or any person in trust for any creditor, with a view to giving such creditor a preference over the other creditors shall, if the person making, paying, or suffering the same, is adjudged bankrupt on a bankruptcy petition presented within 3 months after the date of making, taking, paying or suffering the same, be deemed fraudulent and void against the trustee in the bankruptcy. (2) This section shall not affect the rights of any person taking title in good faith and for valuable consideration through or under a creditor of the bankrupt.

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