Section 54: Avoidance of preference in certain cases — Provincial Insolvency Act, 1920

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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54. Avoidance of preference in certain cases .___ (1) Every transfer of property, every payment made, every obligation incurred, and every judicial proceeding taken or suffered by any person unable to pay his debt as they become due from his own money in favour of any creditor, with a view of giving that creditor a preference over the other creditors, shall, if such person is adjudged insolvent on a petition presented within three months after the date thereof, be deemed fraudulent and void as against the receiver, and shall be annulled by the Court. (2) This section shall not effect the rights of any person who in good faith and for valuable consideration has acquired a title through or under a creditor of the insolvent.

Effective date: 1920-01-01

Related sections

Section 53: Avoidance of voluntary transfer. Any transfer of property not being a transfer made Section 54A: By whom petitions for annulment may be made. A petition for the annulment of any Section 52: Duties of Court executing decree as to property taken in execution. Where execution of Section 55: Protection of bona fide transactions. Subject to the foregoing provisions of this Act with Section 51: Restriction of rights of creditor under execution Section 56: Appointment of receiver.-(1) The Court may, at the time of the order of adjudication, or

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