OFFICIAL ASSIGNEE Vs. S.SHANMUGAM

JUDGEMENT

(1.) All these applications have been taken out by the Official Assignee to nullify the alienation made by the debtor on 8/9/2016, for consequential injunctive reliefs and to permit the sale of the property treating it as part of the insolvent's estate.

(2.) The fact that the debtor viz., the first respondent in all these applications was adjudicated as an insolvent on 18/3/2020 is not in dispute. The Original Insolvency Petition in IP No.8 of 2019 was filed by the petitioning creditor/the second respondent herein seeking adjudication of the first respondent as an insolvent claiming that he has committed an act of insolvency inasmuch as, he has not complied with the Insolvency Notice issued to him in I.N. No.24 of 2018. The petitioning creditor, who had obtained a decree against the insolvent in OS No.1074 of 2012, which was confirmed by this Court in AS No.399 of 2016 had filed execution proceedings in EP No.375 of 2018 for realisation of the decree amount of Rs.21,21,835.50.

(3.) In the interregnum, the Special Leave Petition filed by the debtor in Special Leave Petition (Civil) No.2825 of 2017 also came to be dismissed by the Hon'ble Supreme Court on 25/4/2017. During the course of the execution proceedings, according to the petitioning creditor, she came to know about the alienation made by the judgment debtor in favour of his wife by way of a Settlement Deed on 8/9/2016. Claiming that the alienation itself was with an intention to deny the fruits of the decree, the petitioning creditor sought issuance of an Insolvency Notice in I.N. No.24 of 2018. By order dtd. 11/8/2018, this Court had ordered issuance of notice on the first respondent.