Section 683 of Insolvency Act CAP 53: Power of the Court to void certain preferences
(1) In this section, "relevant time" has the meaning given by section 684.
(2) If of the view that a company has at a relevant time given a preference to a person, the relevant office-holder may apply to the Court for an order under subsection (3).
(3) If, on the hearing of an application made under subsection (2), the Court is satisfied that the company has at a relevant time given a preference to a person, it shall make an order voiding the act constituted by giving the preference and restoring the position that which would have existed if the preference had not been given.
(4) For the purposes of this section and section 685, a company gives a preference to a person if—
(a) the person is one of the company's creditors or a surety or guarantor for any of the company's debts or other liabilities; and
(b) the company does any act or allows an act to be done that (in either case) has the effect of placing the person in a position that, if the company were in insolvent liquidation, is better than the position the person would have been in had that act not been done.
(5) The Court may not make an order under subsection (3) in respect of a preference given to a person unless it is satisfied that the company that gave the preference was influenced in deciding to give it by a wish to produce in relation to that person the effect referred to in subsection (4)(b).
(6) A company that has given a preference to a person connected with the company (otherwise than by being its employee) at the time when the preference was given is presumed, in the absence of evidence to the contrary, to have been influenced in deciding to give it by such a wish as is referred to in subsection (5).
(7) The fact that action has been taken in accordance with the order of a Court does not, without more, prevent the doing or suffering of that action from constituting the giving of a preference.
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