Companies Act, 1973 (Act No. 61 of 1973)Chapter XV: Judicial Management436. Voidable and undue preferences in judicial management |
| 1) | Every disposition of its property which if made by an individual could for any reason be set aside in the event of his insolvency, may, if made by a company unable to pay its debts, be set aside by the Court at the suit of the judicial manager in the event of the company being placed under judicial management, and the provisions of the law relating to insolvency shall mutatis mutandis apply in respect of any such disposition. |
| 2) | For the purposes of this section the event which shall be deemed to correspond with a sequestration order under the Insolvency Act, 1936 (Act No. 24 of 1936), in the case of an insolvent, shall be the presentation to the Court of the application in pursuance of which a judicial management order is granted. |