THOMAS Vs. MATHAI

JUDGEMENT

(1.) The revision petitioner filed I.P. No. 2 of 1972 before the Munsiff, Thiruvalla stating that he owed an amount of Rs. 2739-26 to the respondent under a decree O. S. No. 186 of 1972 of that court; that be had no other liability that he had no property movable or immovable, that he had no means to pay the debt and that he should be adjudicated an insolvent. The respondent opposed the prayer. He contended that the revision petitioner has not disclosed all his assets, that he is getting Military pension, and income from his properties, that he has executed Ext. B2 a sham document of assignment in respect of 40 cents of property on 24-6-1970 in favour of his wife's uncle and that he owed another debt to the Syndicate Bank as per Ext. B1 plaint in O. S. No. 153 of 1972 of the Sub court, Kottayam. The Munsiff held that the revision petitioner owed another debt exceeding Rs. 3,000/- which was the subject matter of Ext. B1 plaint, that he was still in possession of Ext. B2 property, that the petition was defective in as much it did not include all the assets and liabilities of the revision petitioner and that there was no bona fides for the petition. The petition was dismissed. The findings were confirmed in appeal by the Subordinate Judge, Alleppey.

(2.) There is considerable weight in the contention put forward by the revision petitioner that the courts below have misdirected themselves as to exact scope of S.10 of the Insolvency Act -- Kerala Act 2 of 1956 (for short the Act)-and of the enquiry contemplated under S.24.

(3.) Under S.7 of the Act an Insolvency petition may be presented either by a creditor or a debtor on the debtor committing an act of insolvency. Acts of insolvency are detailed in S.6 and under clause (f) if the debtor petitions to be adjudged an insolvent, that itself amounts to an act of insolvency. S.10 lays down the conditions on which debtor may petition. S.10(1) reads: