UNION OF INDIA vs RAJESWARI AND CO, & ORS.

The Supreme Court held that under Section 53 of the Transfer of Property Act, 1882, a debtor may prefer certain creditors over others without invalidating the transfer, provided they retain no benefit from the property. The Court dismissed the appeal by the Union of India, affirming the High Court's finding that the sale of assets was for discharging genuine debts and that the consideration was adequate, thus the transfer was valid despite being in favor of a non-creditor. The Court emphasized that questions of fact could not be raised without material evidence ignored by the High Court.