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Report No. 26

59. Recovery of property or proceeds thereof in case of void or voidable transactions.-(1) Where a person has acquired property of the insolvent under a transaction that is void or under a voidable transaction that is set aside and has sold, disposed of, realised or collected the property or any part thereof, the money or other proceeds, whether further disposed of or not, shall be deemed the property of the Official Assignee.

(2) The Official Assignee may recover the property or the value thereof or the money or proceeds therefrom from the person who acquired it from the insolvent or from any other person to whom he may have resold, transferred or paid, over the proceeds of the property as fully and effectually as the Official Assignee could have recovered the property if it had not been so sold, disposed of, realised or collected.

(3) Notwithstanding sub-section (1), where any person to whom the property has been sold or disposed of has paid or given therefor in good faith adequate valuable consideration, he is not subject to the operation of this section, but the recourse of the Official Assignee shall be solely against the person entering into the transaction with the insolvent for recovery of the consideration so paid or given or the value thereof.

(4) Where the consideration payable for or upon any sale or resale of such property or any part thereof remains unsatisfied, the Official Assignee is subrogated to the rights of the vendor to compel payment or satisfaction.

[New] [Cf. section 66, Canadian Act.]

Realisation of property

Insolvency Laws Back

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