Dr.

RAM MANOHAR LOHIA NATIONAL

LAW UNIVERSITY LUCKNOW

SYNOPSIS
DRAFTIND PLEADING AND CONVEYANCING

COMPONENTS OF A DEED

Submitted to:- Submitted by:-

Ms. Shkuntala Sangam Shivanshu Singh

Assistant Professor Roll no. 140

B.A. LL.B. (Hons.)- 6th sem

INTRODUCTION
A fraudulent conveyance, or fraudulent transfer, is an attempt to avoid debt by transferring
money to another person or company. It is a civil cause of action. It arises in debtor/creditor
relations, particularly with reference to insolvent debtors. The cause of action is typically
brought by creditors or by bankruptcy trustees.1

A transfer will be fraudulent if made with actual intent to hinder, delay or defraud any creditor.
Thus, if a transfer is made with the specific intent to avoid satisfying a specific liability, then
actual intent is present. However, when a debtor prefers to pay one creditor instead of another
that is not a fraudulent transfer.2

There are two types of fraudulent transfer—actual fraud and constructive fraud. Actual fraud
typically involves a debtor who as part of an asset protection scheme donates his assets, usually
to an "insider", and leaves himself nothing to pay his creditors. Constructive fraud does not
relate to fraudulent intent, but rather to the underlying economics of the transaction, if it took
place for less than reasonably equivalent value at a time when the debtor was in a distressed
financial condition. It is important to notice that the actual distinction between the two different
types of fraud is what the intentions of the debtor were. For example, where the debtor has
simply been more generous than they should have or, in business transactions, the business
should have ceased trading earlier to preserve capital (see generally, wrongful trading). In a
successful suit, the plaintiff is entitled to recover the property transferred or its value from
the transferee who has received a gift of the debtor's assets. Subsequent transferees may also
3
be targeted, although they generally have stronger defenses than immediate transferees.

Although fraudulent transfer law originally evolved in the context of a relatively simple
agrarian economy, it is now widely used to challenge complex modern financial transactions
such as leveraged buyouts.

1
http://indiankanoon.org/search/?formInput=fraudulent%20transfer(15-04-2014)
2
Ibid.
3
http://scholar.google.co.in/scholar?q=fraudulent+transfer-

+case+law&btnG=&hl=en&as_sdt=0%2C5&as_vis=1(15-04-2014)
Fraudulent transfer liability will often turn on the financial condition of the debtor at a
particular point in the past. This analysis has historically required "dueling" expert testimony
from both plaintiffs and defendants, which often led to an expensive process and inconsistent
and unpredictable results. Courts and scholars have recently developed market-based
approaches to try to make this analysis simpler, more consistent across cases, and more
predictable.4

Research Methodology:
The project is basically based on the doctrinal method of research work as no field work is
done on this topic. The whole project is made with the use of secondary source.

AIMS & OBJECTIVES:

The aim of the project is to present a detailed study of ‘FRAUDULENT TRANSFER’

through decisions, suggestions , different writings, articles and reports.

SOURCES OF DATA:

The following secondary sources of data have been used in the project-

1. Articles

2. Books

3. Websites

METHOD OF WRITING:

The method of writing followed in the course of this research paper is primarily
analytical.

MODE OF CITATION:

The researcher has followed a blue book citation throughout the course of this research
paper.
Bibliography:
Books Referred:

 Avtar Singh, Company Law, 14th Edn, 2005

 A Ramaiya, A guide to Company Law, 17th Edn. 2010.
 AK Majumdar and GK Kapoor, Company Law and Practice, 16th Edn., 2011
 L.V.V. Iyer, Guide to Company Directors’ Powers, Rights, Duties & Liabilities, 2nd
Edn, 2003

Websites Referred:

 www.kpmg.com
 www.articlesbase.com
 www.mca.gov.in
 www.thehindubusinessline.com
 www.indiacorplaw.blogspot.in