Section 393 — 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 one hundred and eighty days of commencement of winding up, the Court, 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 Court 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 one hundred and eighty days before the
commencement of winding up, the Court may order as it may think fit and may
declare such transaction invalid and restore the position.