Supreme Court of India · 1962-11-14
C. ABDUL SHUKOOR SAHEB vs ARJI PAPA RAO AND OTHERS
- Citation / case number
- SC 1962/10
- Court
- Supreme Court of India
- Petitioner
- C. ABDUL SHUKOOR SAHEB
- Respondent
- ARJI PAPA RAO AND OTHERS
- Bench
- AYYANGAR, N. RAJAGOPALA
Judgment text excerpt
The Supreme Court held that under Section 53(1) of the Transfer of Property Act, 1882, a transfer can be rendered voidable at the instance of creditors if it is made with the intent to defeat or delay them. The Court clarified that the statute does not mandate a specific method for avoidance, allowing an attaching creditor to raise a defense in a suit to set aside a claim order under Order 21, Rule 63 of the Code of Civil Procedure. The Court found that the appellant was not a bona fide purchaser and that the transfer was executed with the knowledge of the creditors, thus affirming the lower court's dismissal of the claim petition.