CHADALAVADA SEETHARAMAYYA Vs. VELIVOLU KESAVAYYA

JUDGEMENT

(1.) These appeals raise an interesting question of law, namely, whether the release of an insolvent father under Section 44, Provincial Insolvency Act from all debts extinguished the liability of the son who is liable under a decree along with the father in respect of his father's debts. The son of the quondam insolvent is the appellant in all the appeals while the decree-holders are the respondents in these appeals The questions arising in these appeals are common and so they can be disposed of together.

(2.) In order to appreciate the points at issue, it is necessary to set out a few material facts. Garikipati Sithaiamiah, the first respondent in C. M. S. A. No. 250 of 1947, obtained a decree in O. S. nO 467 of 1933, on the file of the District Munsif's Court, Repalli against the appellant and his father on a promissory note executed by the father. It is the execution of that decree which has led upto O. M. S. A. No 260 of 1947. There was another decree obtained against the appellant and the Official Receiver, Guntur, as representing his father's estate, by one Kesavayya who instituted a suit in the Sub-Court, Bapatla, O. S. No. 44 of 1934 on a debt contracted by the father. E. P. No. 150 of 1946 which has given rise to C. M. a. no. 839 of 1948 was filed by the decree-holder in execution of this decree. The decree-holder in O. S, no. 467 of 1993 obtained another decree against the appellant in O. S. No. 906 of 1936 on the file of the District Munsif's Court of Repalli in respect of a debt contracted by the father who had by the time of the decree become an insolvent, C. M. S. A. No. 249 of 1947 arises out of this decree.

(3.) The appellant's father was adjudged an insolvent in a petition in I. P. No 73 of 1934, and his properties were vested in the Official Receiver of Guntur. While the administration of the insolvent's estate was pending, there was a reference to arbitral ion by the insolvent and his creditors as evidenced by Ex. D.2 dated 12 8 1987. The purpose of this reference was to fix the proportion of the debts due by the insolvent by the payment of which the debts should be discharged. In pursuance of this reference the arbitrators passed an award on l7-8-1938 under which a payment of three annas in the rupee, would extinguish the debts not only as against the father insolvent but as against the son as well and thereby exonerating the son (appellant) completely. In accordance with the terms of this award, the insolvent deposited a sum sufficient to meet all the debts on the basis of the proportion fixed by the arbitrators.