The Transfer of Property Act, 1882 states that any transfer of immovable property that is made with intent to defeat or delay the creditors of the transferor shall be voidable at the option of any creditor so defeated or delayed. When a person is burdened with huge debts and there is a chance of institution of suit for recovery of debts against him, sells his immovable property to avoid the chance of its attachment and sale for the purpose of payment of the debt, such transfer is liable to be cancelled at the option of the creditors, if the transferee has the knowledge of the fraudulent intention of the transferor. Where a transfer of immovable is made without any consideration with an intention to defraud a subsequent transferee, such transfer shall be voidable at the instance of the transferee. However, such transfer should not be held to be fraudulent by reason of any subsequent transfer for consideration.
