31. Fraudulent settlements

In either of the following cases -

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

in the case of any covenant or contract made in consideration of marriage for the future settlement on, or for the settler's wife or children of, any money or property, wherein he had not at the date of his marriage any estate or interest (not being money or property of or in right of his wife), if the settlor is adjudged bankrupt or compounds or arranges with his creditors and it appears to the Court that such 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 debtor has been guilty of fraud.