D M SRIPATHY Vs. B S RAMACHANDRAN

JUDGEMENT

(1.) The application A.No.94 of 2013 is filed under Order II Rule 1 of Insolvency Rules read with Section 21 of Presidency Towns Insolvency Act 1909 praying to annul the order of adjudication dated 9.7.2009 made against the applicant.

(2.) The brief facts of the case for disposal of the application are as follows:- The first respondent, petitioning-creditor based on an order dated 24.7.2002 in C.P.No.332 of 2000 passed by the First Additional Labour Court, Chennai after issuing Insolvency Notice, filed Insolvency Petition No.80 of 2007 under Sections 9(2) and 10 to 13 of the Presidency Towns Insolvency Act, 1909. This Court ordered notice to the debtor, the applicant herein which was not served and the notice was returned unserved with endorsement "left". Thereafter paper publication was effected and this court by order dated 9.7.2009 passed ex parte order of adjudication against the debtor, the applicant herein declaring him as insolvent.

(3.) The applicant has stated that he ought not to have been adjudicated as an insolvent, as the order, which is the basis for the Insolvency Notice as well as the Insolvency Petition, is not an order or decree within the meaning of the Presidency Towns Insolvency Act. The essential conditions of a decree or order contemplated under the Presidency Towns Insolvency Act is that the adjudication must be in a suit and not otherwise. The certificate issued by the Government states that the amounts have to be recovered under the provisions of the Revenue Recovery Act. When the order is incapable of execution by a civil Court, the insolvency proceedings under Section 9(2) of the Presidency Towns Insolvency Act as if the certificate is a decree is wholly unsustainable and untenable in law. The applicant/debtor, therefore, prays to annul the order of adjudication made against the applicant on 9.7.2009.