Section 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 applicatio n, the Tribunal may order as it may think fit and may declare such
transaction invalid and restore the position.