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Report No. 57

5.12. Illustrations.-

A few illustrations will be useful.1

(i) A becomes heavily indebted to B who is expected to attach his property for the satisfaction of his debt. To screen it from B, A transfers some of it to C. The transfer is void.2

(ii) A has innocently transferred his property to B who holds it for A, but getting involved in heavy losses, B compromises with his creditor C to whom he transfers the property X in' satisfaction of his debt. A sues to eject C on the strength of his real title. C claims to be a bona fide purchaser from B without notice of A's title. A cannot eject C.3-4

1. Some of the illustrations are taken from Gour Hindu Code, (1938), p. 728, para. 220.

2. Section 53, Transfer of Property Act.

3. Section 41, Transfer of Property Act.

4. As to public policy, see Sheo Narnyan v. Mato Prasad, ILR 27 All 73.

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