Section 62: Debt of creditor who shows excess debt not to receive priority

Notwithstanding anything contained in sub-section (1) of Section 61, if it is held that, by a collusion between a person likely to become a bankrupt and any creditor, and being guided by a malafide motive to cause loss to another creditor or claimant, more debts or claims have been shown from any transaction which has never happened nor been carried on, the debt or liability of such a creditor shall be paid or set off only after the debt or liability of other creditor or claimant is satisfied.