MOHANLAL PREMJIBHAI THAKKAR Vs. SHAH ATULKUMAR KANTILAL

JUDGEMENT

(1.) A short question is whether the Insolvency Court has any discretion to issue a notice to the opponents-debtors after admitting the insolvency petition and before directing public notice to issue. One more significant fact is that the debtors had already filed a caveat and served copy thereof to one of the petitioning creditors prior to filing of the insolvency petition. Yet without hearing the opponents-debtors the trial Court had passed the following order: General and public notice and special notice to issue according to law. Public notice to issue In Gujarat Government Gazette also. Applicant to deposit Rs. 700/- for the expenses. Notice be issued in daily Jana Satta.

(2.) The debtors filed an application ex. 26 praying that the order of public notice below ex. 1 be stayed and the other orders also be stayed since they were passed without any notice to them (the debtors) It was pointed out in the application that the Caveat Application No. 25 of 1982 was filed in the court on 22/03/1982 and the petitioner No. 1 had received the same on 30/03/1982 and yet the original applicants had obtained ex-parte order of public notice on 7/04/1982. It was pointed out that the order of public notice has likely serious adverse irreparable and irreversible effect on the business and reputation of the opponents-debtors.

(3.) The learned trial Judge heard the application and initially passed an order on 28/04/1982 granting a stay for two days and there- after after full length hearing partly granted the application holding that it is not mandatory on the court that such public notice should be issued immediately mechanically and ordered that the order issuing public notice be stayed till further orders and the application is kept pending for rest of the prayers.