A K KAIMAL Vs. SUDARSHAN TRADING CO LTD

JUDGEMENT

(1.) This appeal under Sec.75(2) of the Provincial Insolvency Act (Insolvency Act) is directed against an order made by the Dist Judge at Mysore in insolvency Case 4 of 1972, whereby the appellant's petition preferred under Sec.7 of the Insolvency Act had been dismissed.

(2.) The appellant preferred a petition under S.7 of the Insolvency Act to be adjudged as an insolvent as he was unable to pay two items of debts due to tne itspondents. One of the items represents a debt of Rs.3,010 and is evidenced by a decree passed in Os.543 of 1971 on the file of tne First Munsiff at Mysore. The ether item consists of a sum of Rs.13,3l9-96 with interest alleged to be due to the second respondent on account of supplies of super phosphate made by the second respondent to the appellant.

(3.) The learned Dist Judge on an examination of the appellant came to, the conclusion that the first debt had been eslabished and the second could not be accepted as subsisting even if the transaction alleged was true. He, however, dismissed the petition on the ground that the appellant who on his retiring from service under Chamundy Curing Works in me year 1969 had received a sum of Rs.6,000 to. 7,000, presumably as a retirement benefit, was unable to account as to the manner in which he dealt with or spent the said amount. In short, the Court, as it appears to us, came to the conclusion that the petitioner's claim that he was unable to pay the said debts could not be believed. Hence this appeal.