Section 55: Protection of bona fide transactions. Subject to the foregoing provisions of this Act with

Current legal status not independently verified — Source: Pakistan Code (single official PDF, 2026-08-21). Whether this provision is still in force has not been independently verified.

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55. Protection of bona fide transactions. Subject to the foregoing provisions of this Act with respect to the effect of insolvency on an execution, and with respect to the avoidance of certain transfers and preferences, nothing in this Act shall invalidate in the case of an insolvency___ (a) any payment by the insolvent to any of his creditors ; (b) any payment or delivery to the insolvent ; (c) any transfer by the insolvent for valuable consideration ; or (d) any contract or dealing by or with the insolvent for valuable consideration : Provided that any such transaction takes place before the date of the order of adjudication, and that the person with whom such transaction takes place has not at the time notice of the presentation of any insolvency petition by or against the debtor. Realisation of Property

Effective date: 1920-01-01

Related sections

Section 54A: By whom petitions for annulment may be made. A petition for the annulment of any Section 56: Appointment of receiver.-(1) The Court may, at the time of the order of adjudication, or Section 54: Avoidance of preference in certain cases Section 57: Power to appoint Official Receiver Section 53: Avoidance of voluntary transfer. Any transfer of property not being a transfer made Section 58: Powers of Court if no receiver appointed. Where no receiver is appointed, the Court shall

Version provincial-insolvency-act-1920~PK-FED~base · Source-traceable official reference. LawHub does not modify the official record.