(1) Where the bankruptcy trustee, on an examination of the transactions of the bankrupt, determines that the bankrupt has entered into undervalued transactions during the relevant period, the bankruptcy trustee shall apply to the Adjudicating Authority to declare such transactions void and reverse their effect.

(2) A transaction shall be considered undervalued where the bankrupt—

1. makes a gift to a person; or
2. enters into a transaction with a person which involves the transfer of assets for a consideration the value of which is significantly less than the value provided by the bankrupt.