📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      When shall a corporate debtor be deemed to have given a

      preference as per the provisions of preferential transactions under the IBC?
      A If there is a transfer of property or an interest thereof of the corporate debtor for the benefit of a creditor or a surety or a guarantor for or on account of an antecedent financial debt or operational debt or other liabilities owed by the corporate debtor Correct Answer Incorrect Answer
      B If the transfer is made in the ordinary course of the business or financial affairs of the corporate debtor or the transferee Correct Answer Incorrect Answer
      C If the transfer has the effect of putting a creditor or a surety or a guarantor in a beneficial position than it would have been in the event of a distribution of assets Correct Answer Incorrect Answer
      D All a b & c Correct Answer Incorrect Answer
      E Both a & c Correct Answer Incorrect Answer

      Solution

      Section 43-Preferential transactions and relevant time: (2) A corporate debtor shall be deemed to have given a preference, if— (a) there is a transfer of property or an interest thereof of the corporate debtor for the benefit of a creditor or a surety or a guarantor for or on account of an antecedent financial debt or operational debt or other liabilities owed by the corporate debtor; and (b) the transfer under clause (a) has the effect of putting such creditor or a surety or a guarantor in a beneficial position than it would have been in the event of a distribution of assets being made in accordance with section 53.

      Practice Next
      More Section Tests Legal Questions
      ask-question