328. Fraudulent preference
(1) Where a company has given preference to a person who is one of the creditors
of the company or a surety or guarantor for any of the debts or other liabilities of the
company, and the company does anything or suffers anything done which has the effect of
putting that person into a position which, in the event of the company going into liquidation,
will be better than the position he would have been in if that thing had not been done prior
to six months of making winding up application, the Tribunal, if satisfied that, such transaction
is a fraudulent preference may order as it may think fit for restoring the position to what it
would have been if the company had not given that preference.
(2) If the Tribunal is satisfied that there is a preference transfer of property, movable or
immovable, or any delivery of goods, payment, execution made, taken or done by or against
a company within six months before making winding up application, the Tribunal may order
as it may think fit and may declare such transaction invalid and restore the position.