CHELLATHURAI NADAR Vs. RAMASWAMI PILLAI

JUDGEMENT

(1.) This revision is against the orders passed by the District Judge, Nagercoil dated 25-3-1988 in A.S. No. 63/1983 preferred against the order passed by the Sub-Judge, in I.P. No.6 of 1980.

(2.) The petitioner's case is as follows: The petitioners filed a petition under Section 9 of the Provincial Insolvency Act to adjudge the first respondent as an insolvent, contending that the first respondent who has borrowed Rs. 100/- from the petitioner on a promissory note had committed an act of insolvency on 25-8-1979 by entering into an agreement of sale of the 8th respondent. The first respondent has borrowed to the tune of Rupees 48,230-50/- under various respondents 2 to 7. The property for which he had entered into an agreement is the only property owned by him. The 5th and 6th respondents have filed suits against the first respondent for the recovery of the amounts due to them under promissory notes. The 4th respondent has been transposed as the second petitioner after the death of the first petitioner.

(3.) The first respondent in his counter has admitted the borrowing from respondents Nos. 2 to 7. He has stated that he is not in a position to pay of the dues and that he is entitled to the benefits under the provisions of the Tamil Nadu Debt Relief Act. According to the first respondent, he had entered into an agreement of sale of the property with the 8th respondent with the bona fide belief of paying off his debts out of the consideration.