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Section 38: Fraudulent alienations or encumbrances void.

The Maharashtra Debt Relief Act, 1975State Act of Maharashtra · Act 3 of 1976

(1) If in the course of the hearing of an application made under section 24, the Court finds that the debtor has made an alienation of property or created any encumbrance thereon with intent to defeat or delay any of his creditors the Court shall, by notice, summon the debtor and the person in whose favour the alienation is made or encumbrance is created, to appear before it on a day to be specified in the notice.

(2) On the day specified in the notice or such other day to which the hearing may be adjourned, the Court shall hear the parties and record evidence as may be produced. If the Court is satisfied that the alienation was made or the encumbrance was created with intent to defeat or delay any of the creditors of the debtor, the Court shall declare the alienation or encumbrance to be void.

(3) Nothing in this section shall impair the rights of an alienee or the holder of an encumbrance in good faith and for valuable consideration.

Where this provision sits

ActThe Maharashtra Debt Relief Act, 1975
Section38
Marginal noteFraudulent alienations or encumbrances void.
JurisdictionState of Maharashtra
StatusIn force as published by the source

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