OFFICIAL RECEIVER KANPUR Vs. ABDUL SHAKOOR

JUDGEMENT

(1.) Respondents 1 to 3 in this appeal presented a petition before the Insolvency Judge, Kanpur for an order adjudicating the second appellant - Kotwaleshwar Prasad insolvent. In their petition they alleged that Kotwaleshwar had in the course of business dealing with them borrowed Rs.15,000/- on September 28, 1935 from respondents 1 and 3 and had executed a promissory note agreeing to repay the amount, and that he had borrowed Rs. 3,500/- on January. 9, 1936 and Rs. 4,000/- on April 7, 1936 from respondent 2, and executed similar promissory notes, that he had failed to repay the amounts due by him and with a view to defeat or delay his creditors secluded himself so as to deprive his creditors of the means of communicating with him and had thereby committed an act of insolvency. The Insolvancy Judge by order dated October 8, 1937 adjudicated Kotwaleshwar insolvent and appointed the first appellant the Official Receiver, Kanpur, as receiver of his estate with powers under S. 80 of the Provncial Insolvency Act, 1920 - hereinafter called 'the Act'.

(2.) The Receiver proceeded in exercise of the powers under S. 33 read with S. 80 of the Act to frame a schedule of debts. The claims set up by the respondents were challenged by Kotwaleshwar and a creditor named Abdul Sayed, but the Official Receiver included the claims of the respondents in the schedule of debts, for in his view Kotwaleshwar had admitted the claims on October 8, 1937 before the Insolvency Court.

(3.) In appeal under S. 68 to the Insolvency Judge the matter was remanded that the promissory notes were executed by Kotwaleshwar under the debts due to the respondents. The Official Receiver then held a further enquiry and rejected the claims of the respondents 1 to 3. He held that it was not proved that Kotwaleshwar had received consideration for the three promissory notes. In the view of the Official Receiver the documentary evidence produced by Kotwaleshwar and the respondents established that the promissory notes were executed by Kotwaleshwar under the influence of respondents 1 to,3 and their servant Amir Hassan and that the evidence including the books of account of respondents 1 to 3 in support of the advance of consideration under the promissory notes was unreliable.