The Provincial Insolvency Act,1920
Section 55. Protection of bona fide transactions
Subject to the foregoing provisions of this Act with respect to the effect of insolvency on an execution, and with respect to the avoidance of certain transfers and preferences, nothing in this Act shall invalidate in the case of an insolvency–
(a) Any payment by the insolvent to any of his creditors;
(b) Any payment or delivery to the insolvent;
(c) Any transfer by the insolvent for valuable consideration; or
(d) Any contract or dealing by or with the insolvent for valuable consideration;
Provided that any such transaction takes place before the date of the order of adjudication, and that such person with whom such transaction takes place has not at the time notice of the presentation of any insolvency petition by or against the debtor.