Fraudulent transfer
Section 53 of the Transfer of Property Act, 1882 deals with fraudulent transfer. Every transfer of immoveable property 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. The Act came into force on 01 Jul 1882.
1[53. Fraudulent transfer.-- (1) Every transfer of immoveable property 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.
Nothing in this sub-section shall impair the rights of a transferee in good faith and for consideration.
Nothing in this sub-section shall affect any law for the time being in force relating to insolvency.
A suit instituted by a creditor (which term includes a decree -holder whether he has or has not applied for execution of his decree) to avoid a transfer on th e ground that it has been made with intent to defeat or delay the creditors of the transferor, shall be instituted on behalf of, or for the benefit of, all the creditors.
(2) Every transfer of immoveable property made without consideration with intent to defraud a subsequent transferee shall be voidable at the option of such transferee.
For the purposes of this sub-section, no transfer made without consideration shall be deemed to have been made with intent to defraud by reason only that a subsequent transfer for consideration was made.]
Section 53, The Transfer of Property Act, 1882 (Act 4 of 1882).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
-
Ashutosh vs State of Rajasthan
Court's Decision & Legal Precedent
A partner of a partnership firm against which a decree has been obtained remains jointly and severally liable for the firm's debts. A partner's individual property can be attached in execution proceedings if the partner has been duly served with notice. Transfers of immovable property made with intent to defeat or delay creditors are voidable at the option of such creditors. The procedural protections of Order 21 Rules 49 and 50 CPC do not prevent execution against a partner's property where the decree was validly obtained against the firm and the partner was properly served.
On this section: Every transfer of immovable property made with intent to defeat or delay creditors of the transferor shall be voidable at the option of any creditor so defeated or delayed. Court held this applied to the will executed by Dhanwanti Devi, finding it was made to defeat the State's execution claim.
-
S.K. Gangadhara v. Ramachandra
Court's Decision & Legal Precedent
TP Act s.53 fraudulent transfer is voidable (not void ab initio) and may be invoked by a decree-holder as defence to an Order XXI R.58 claim; a transferee in good faith for consideration is protected under s.53(1) second paragraph. Antecedent registered agreement before attachment also engages CPC s.64(2). DATE-CHECK FP on portal history dates; body CORAM dated 13th April 2015 Final Judgment (matches order index 2015-04-13).
On this section: Court construed s.53 voidable fraudulent-transfer suit/defence frame in O21 R.58 objection; bona fide purchaser exception applied.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
-
… He states furthermore, the said plea of possession cannot be entertained by this Court as the ATS relied upon by the plaintiffs is admittedly unregistered as well as unstamped and therefore the plaintiff cannot rely upon Section 53-A of the Transfer of Property Act, 1882 ('TP Act'). He stated that in the absence of the registration of the ATS, the plaintiffs are not entitled to any protection qua their alleged possession. He stated no documents have been filed to show that the plaintiffs are prima facie in alleged possession of the suit …
-
… (M/s.) and another v. Jyothi Susan John & ors. (2018(5) KHC 821) , submits that a creditor can assail a fraudulent transfer and avoid it in a proceeding under Order XXXVIII Rule 8 CPC, otherwise than by a suit under Section 53 of the Transfer of Property Act, 1882 (hereinafter for short, 'the TP Act'). 7. The argument of the learned counsel for the petitioner does not appear to be sound. In my view, the law laid down in the Full Bench decision does not support the contention canvassed by the learned counsel. 8. Once the property is …
-
… A transaction of sale having already taken place even prior to the institution of a suit cannot be said to have been made with the intention to obstruct or delay the execution of any decree. It would be a different case altogether if a creditor wants to assail such transfer by sale under Section 53 of the Transfer of Property Act, 1882 (hereinafter referred to as 'the Act') on the ground of a fraudulent transfer. Such suit would be decided on totally different considerations in accordance with the provisions of Section 53 of the Act. Order XXXVIII Rule 10 CPC reads as under: "10. Attachment before judgment …
Questions about Section 53
What have the courts held on Section 53 of the Transfer of Property Act?
Ashutosh vs State of Rajasthan (30 Aug 2005) is the leading judgment on this section among those set out below: Every transfer of immovable property made with intent to defeat or delay creditors of the transferor shall be voidable at the option of any creditor so defeated or delayed. Court held this applied to the will executed by Dhanwanti Devi, finding it was made to defeat the State's execution claim. Another 1 judgment on this section is set out below, 1 of them from the Supreme Court. They run from 2005 to 2015.
How do I find court cases under Section 53 of the Transfer of Property Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: TP Act 53, section 53 TP Act, section 53 of the Transfer of Property Act. People searching for it also type tpa 53a and tampa 53 man roster. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with Ashutosh vs State of Rajasthan (30 Aug 2005).
When did Section 53 of the Transfer of Property Act come into force?
Section 53 of the Transfer of Property Act, cited as TP Act 53, came into force on 01 Jul 1882, having been enacted on 17 Feb 1882. It is in force as at the date shown on this page.
Other sections of this Act
- 55. Rights and liabilities of buyer and seller1096 words
- 108. Rights and liabilities of lessor and lessee1030 words
- 69A. Appointment of receiver892 words
- 3. Interpretation-clause658 words
- 35. Election when necessary614 words
- 58. Mortgage , mortgagor , mortgagee , mortgage-money and mortgage- deed defined554 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.