Effect of fraudulent settlements on discEffect of fraudulent settlements on discharge.

### Effect of fraudulent settlements on discharge. E.B.A., s. 27. N.S.W., s. 41. Vic., s. 148. 120. In either of the following cases, that is to say:— (a) In the case of a settlement made before and in consideration of marriage where the settlor is not at the time of making the settlement able to pay all his debts without the aid of the property comprised in the settlement; or (b) In the case of any covenant or contract made in consideration of marriage, for the future settlement on or for the settlor’s wife husband or children of any money or property wherein the settlor had not at the date of the marriage any estate or interest (not being money or property of or in right of the wife or husband), if the settlor becomes bankrupt or compounds or arranges with his creditors, and it appears to the Court that the settlement, covenant, or contract was made in order to defeat or delay creditors, or was unjustifiable having regard to the state of the settlor’s affairs at the time when it was made, the Court may refuse or suspend an order of discharge, or grant an order subject to conditions, or refuse to approve a composition or arrangement, as the case may be, in like manner as in cases where the bankrupt has been guilty of fraud.