S P GOVINDARAJ Vs. A PALANIAPPAN

JUDGEMENT

(1.) THE petitioners are challenging their adjudication as insolvents by the Additional District Judge at Erode in C.M.ANo.51 of 1990. THE 1st petitioner is the husband of the petitioner. THE 1st petitioner filed I.P.No.16 of 1985 on the file of Sub Court, Erode, 10.10.1985 for declaring him an insolvent. THE first respondent herein was shown as creditor, to whom a sum of Rs.1,40,000 was stated to be due. On the same day, the second petitioner filed I.P.No.15 of 1985 for declaring her an insolvent. THE first respondent herein was shown to be a creditor and the same amount of Rs.1,40,000 was mentioned as debt. In both the petitions, it was alleged that the business of the first petitioner ended heavy loss and they could not pay the debts due to the creditors. THE petitioners were opposed by the creditors. THE second respondent herein filed applications to get itself impleaded as party to the said Insolvency Petitions. Those petitions were ordered and second respondent was impleaded. THE debt due to the second respondent was mentioned to be Rs.1,25,000. THE petitions were dismissed for default on 21.7.1987 as the petitioners and their counsel were absent.

(2.) ON 9.11.1987, the respondents herein filed I.P.No.41 of 1987 on the file of Sub Erode, against the petitioners for adjudging them insolvents. Paragraph 9 of the reads as follows:

(3.) THE respondents filed a counter statement on 11.8.1989. Paragraphs 5 and 6 counter statement are in these terms: " THE contentions of para 9 of the petition are false. THE act of the insolvency against the respondent is false and incorrect. Hence the petitioners are not entitled order of this application. 6. THE petitioners have no cause of action to file the petition, one alleged is false and non-est. THE respondents reserve their right to file additional counter if any at a future date." THEre is no other averments in the counter statement either denying specifically allegations found in paragraph 9 of the Insolvency petition or stating clearly whereabouts of the respondents during the relevant period.