(1) Where, during the pendency of any proceedings under this Act, any person
liable to pay any tax or other dues creates a charge on, or transfers any movable
or immovable property belonging to him in favour of any other person with the
intention of defrauding any such tax or other dues, such charge or transfer shall
be void as against any claim in respect of any tax or other dues payable by such
person as a result of the completion of the said proceedings:
Provided that nothing in this section shall impair the rights of a transferee
in good faith and for consideration.
(2) Nothing in sub-section (1) shall apply to a charge or transfer in favour of a
banking company as defined in the Banking Regulation Act, 1949 ( Act X of
1949) or any other financial institution specified by the State Government by
notification in this behalf.
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