How amendments in IBC could put Family Trusts in the dock

“It is for the creditors to prove that transfer to the trust fund has been done with mala fide intentions. Such transactions are termed as PUFE (Preferential, Undervalued, Fraudulent and Extortionate) transactions. At this juncture it is pertinent to note that the Code provides a look-back period only for PUE transactions and not for fraudulent transactions. For this, we will need to refer to S17 of the Limitation Act.”

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