R. SUBRAMANIAM Vs. CANARA BANK

JUDGEMENT

(1.) APPLICATION No. 604 of 2005 has been filed to set aside and rescind the ex parte order dated June 12, 2000, made against the applicant in the above matter declaring him as an insolvent.

(2.) APPLICATION No. 605 of 2005 has been filed to stay the operation of the ex parte order of adjudication dated June 12, 2000, passed in the above matter pending final orders.

(3.) IT is the case of the said creditor that the applicant herein approached her for financial assistance and pursuant to the same, a sum of Rs. 50 lakhs was lent on June 13, 2000. To repay the abovesaid loan the applicant issued a cheque for Rs. 5,00,000 and that was encashed. Thereafter, in full and final liquidation of the liability, the applicant issued a cheque for Rs. 95,25,000 dated August 10, 2005. But the said cheque was returned and in the mean time, she came to know that the applicant was adjudged as an insolvent through a paper article. She further stated that the applicant already filed an Application No. 421 of 2005 for annulment of the said adjudication and subsequently he withdrew the same. It is further submitted that if the order of adjudication dated June 12, 2000, is set aside, it would be detrimental to the interest of all the creditors including her. Therefore, she prayed for dismissal of the above two applications.