1912_BANKRUPTCY_ORDINANCE__1891 — Page 27

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Avoidance of voluntary settlements.

c. 52 s. 47.]

No. 7 of 1891.

BANKRUPTCY

retain the same as against the execution creditor, but otherwise it shall be dealt with as if no bankruptcy petition had been presented.

(3) An execution completed as aforesaid is not invalid by reason only of its being an act of bankruptcy, and a person who purchases the property of the debtor in good faith under a sale shall in all cases acquire a good title to it as against the trustee in bankruptcy.

40.-(1) Any settlement of property, not being a settlement made before and in consideration of marriage, or made in favour of a purchaser or incumbrancer in good faith and for valuable consideration, or made on or for the wife or children of the settlor of property which has accrued to the settlor after marriage in right of his wife, shall, if the settlor becomes bankrupt within 2 years after the date of the settlement, be void against the trustee in the bankruptcy, and shall, if the settlor becomes bankrupt at any subsequent time within 10 years after the date of the settlement, be void against the trustee in the bankruptcy, unless the parties claiming under the settlement can prove that the settlor was, at the time of making the settlement, able to pay all his debts without the aid of the property comprised in the settlement, and that the interest of the settlor in such property has passed to the trustee of the settlement on the execution thereof.

Avoidance of preferences in certain cases.

[ib. s. 48.]

(2) Any covenant or contract made in consideration of marriage, for the future settlement on or for the settlor's wife or children of any money or property wherein he had not, at the date of his marriage, any estate or interest, whether vested or contingent, in possession or remainder, and not being money or property of or in right of his wife, shall, on his becoming bankrupt before the property or money has been actually transferred or paid pursuant to the covenant or contract, be void against the trustee in the bankruptcy.

(3) "Settlement" shall, for the purposes of this section, include any conveyance or transfer of property.

41.-(1) Every conveyance or transfer of property or charge thereon made, every payment made, every obligation incurred, and every judicial proceeding taken or suffered by any person unable to pay his debts as they become due from his own money in favour of any creditor or any person in trust for any creditor, with a view of giving such creditor a preference over the other creditors, shall, if the person making, taking, paying, or suffering the same is adjudged bankrupt, be void as against the trustee in bankruptcy.

...

(2) ...

43.-(1) Where any person being insolvent or unable to pay his debts as they become due from his own money has, within 3 months before the date of the presentation of a bankruptcy petition against him, made a payment or transfer of property to a creditor, or incurred an obligation or suffered a judicial proceeding in favour of a creditor, with a view to giving that creditor a preference over other creditors, such payment, transfer, obligation, or judicial proceeding shall be void as against the trustee in bankruptcy.

(2) Where any person being insolvent or unable to pay his debts as they become due from his own money has, within 6 months before the date of the presentation of a bankruptcy petition against him, made a payment or transfer of property to a person in trust for a creditor, or incurred an obligation or suffered a judicial proceeding in favour of a person in trust for a creditor, with a view to giving that creditor a preference over other creditors, such payment, transfer, obligation, or judicial proceeding shall be void as against the trustee in bankruptcy.