THE PATHINEN GRAMA ARIYA VAISYA BANK, LTD. BY ITS MANAGING DIRECTOR, S.V. KRISHNAMURTHI CHETTIAR Vs. S.S.K. NAGASWAMI CHETTIAR AND ORS.

JUDGEMENT

(1.) THIS Civil Revision Petition raises an interesting question of law, namely, whether after the amendment of Section 9(1)(c) of the Provincial Insolvency Act, by Act III of 1950, by adding a proviso as follows:

(2.) A Full Bench ruling of this Court, in Chenchu Ramana v. : (1935)69MLJ283 ., (a very similar case, where too the insolvency petition was filed on the reopening day, after three months had elapsed) has held that the period of three months fixed in Section 9(1)(c) of the Provincial Insolvency Act is not a period of limitation but is a condition precedent to adjudication and the test to be applied for finding out whether the act would be 'an act of insolvency' or not. Accordingly, the alleged act of insolvency which had, in that case also, occurred more than three months prior to the presentation of the petition, was held to be not " an act of insolvency " and not available as a ground for adjudication. Beasley, C.J., observed:

(3.) I may add that Balakrishna Ayyar, J., had to consider this same question of law in C.R.P. No. 586 of 1953. In his order dated 16th November, 1954, he took the same view as I have done. This petition deserves to be and is hereby dismissed. But, in the peculiar circumstances, I direct the parties to bear their own costs in his petition.