Where the corporate debtor has entered into an undervalued transaction as referred to in sub-section (2) of section 45 and the Adjudicating Authority is satisfied that such transaction was deliberately entered into by such corporate debtor-
(a) for keeping assets of the corporate debtor beyond the reach of any person who is entitled to make a claim against the corporate debtor; or
(b) in order to adversely affect the interests of such a person in relation to the claim, the Adjudicating Authority shall make an order-
(i) restoring the position as it existed before such transaction as if the transaction had not been entered into; and
(ii) protecting the interests of persons who are victims of such transactions:
Provided that an order under this section-
(a) shall not affect any interest in property which was acquired from a person
other than the corporate debtor and was acquired in good faith, for value and
without notice of the relevant circumstances, or affect any interest deriving
from such an interest, and
(b) shall not require a person who received a benefit from the transaction in good faith, for value and without notice of the relevant circumstances to pay any sum unless he was a party to the transaction.
Insolvency and Bankruptcy Code 2016
Section 41 Determination of valuation of claims
Section 42 Appeal against the decision of liquidator
Section 43 Preferential transactions and relevant time
Section 44 Orders in case of preferential transactions
Section 45 Avoidance of undervalued transactions
Section 46 Relevant period for avoidable transactions
Section 47 Application by creditor in cases of undervalued transactions
Section 48 Order in cases of undervalued transactions