APPANA VEERARAGHAVAMMA Vs. CHANDALADA PADMARAJU

JUDGEMENT

(1.) The appellants are three alienees from the insolvents. Their alienations have been set aside by the learned District Judge of East Godavari as fraudulent preferences under Section 54 of the Provincial Insolvency Act, on applications filed by a decree-holder creditor, admittedly to the tune of about Rs. 30,000. The Official Receiver declined to move the court to set aside the alienations, and the petitioner had no option but to apply to the Insolvency Court. There were altogether six alienations set aside by the learned District Judge on six different applications filed, in a common order.

(2.) The insolvents were adjudicated on 27-1-1947 on a creditor's application filed on 5-11-1945. (After dismissing C. M. A. No. 234 of 1950 the judgment proceeded):

(3.) C. M. A. No. 324 of 1950 raises an interesting point of law for determination. In this case the alienee appellant was a creditor under a pronote, Ex. B. 24 dated 258- 1943 for a sum of Rs. 2500. On 20-7-1945 he took a sate under Ex. B. 23 from the insolvent of 5-19 acres of dry land for a consideration of Rs. 4400 made up as follows: (1) Rs. 2558-2-0 in settlement of his own pronote debt, (2) the discharge of a pronote debt under Ex. B. 13 dated 1-6-1945 amounting to Rs. 1214-11-6 due to one Subba Rao (R. W. 10), (3) Rs. 320 to be paid to one Adinarayanamurthi due under a pronote, the payment being evidenced by Ex. B. 25; (4) a balance of Rs. 307-2-6 paid before the Sub-Registrar. The learned District Judge had no reason for doubting that Ex. B. 23, was executed for full consideration; and while setting aside this alienation, directed the alienee to prove his debt in the insolvency.