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The automatic crystallisation clause under Clause 4. The effective date was set as the date on which the first instalment of RM, was paid by Borcos and an irrevocable letter of undertaking was issued by Borcos to pay the second instalment of RM The impugned agreements 1 were void under Section 1 of the Companies Act , read with Section 53 1 of the Bankruptcy Act , for contravening the undue preference rule.
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