ISSUE:
Whether the suit tannery sale deed was executed in fraud of creditors and thus, not binding?
Whether the sale deed in favour of the plaintiff is a genuine transaction?
Whether a suit under Section 53 of the Transfer of Property Act was to be filed by a representative of all the creditors and not just a single creditor?
Whether if the debtor had other property that would serve the interests of the creditors, would Section 53 still apply?
RULE:
In the present case, the court considered multiple factors to come to the conclusion that the transfer of the suit tannery was done with an intention to delay/defeat the creditors.
Knowledge and concurrence on behalf of the plaintiff was enough to prove that the sale of the suit tannery was a scheme by Lala to put the property out of the reach of creditors.