PANNEER ALIAS ARULARASU Vs. MOHANAN

JUDGEMENT

(1.) The revision petitioners are the petitioners in M.P.No.278 of 1984 in I.P.No.3 of 1970 on the file of the Sub Court, Kancheepuram.

(2.) The revision petitioners filed M.P.No.278 of 1984 under Section 68 of the Provincial Insolvency Act, to set aside the sale held on 16.5.1984 by the Official Receiver, Chengalpattu on the ground that the sale was brought out without proper publication, because of which the properties of the insolvent were knocked away for lesser price of Rs.30,000/- though the properties were worth about Rs.60,000/-. The above M.P.No.278 of 1984 was allowed by the Sub Court, Kancheepuram on 5.10.1990. The appeal C.M.A.No.31 of 1990 filed by the first respondent herein-purchaser in the auction held on 16.5.1984 conducted by the Official Receiver, Chengalpattu was allowed as per judgment dated 26.7.1999. The said judgment is under challenge in this Civil Revision Petition.

(3.) The learned counsel for the revision petitioners argued that the revision petitioners are the owners of the properties sold in the auction by the Official Receiver and as such they have got every right for seeking to set aside such sale, though they are not the debtors or creditors of the insolvent. It is further argued that inasmuch as the revision petitioners being the transferees from the insolvent prior to the insolvency proceedings and having stepped into the shoes of the insolvent, can very well question the sale held by the Official Receiver. The learned counsel further submitted that inasmuch as the sale was held within 30 days of the sale notice Ex B-11 dated 17.4.1984 fixing the sale as 16.5.1984 being improper and not as per rules, the said sale is to be aside, in that there have been irregularity committed by the Official Receiver.