GUNTUR AKKAYYA Vs. PATHURI APPAYYA

JUDGEMENT

(1.) THIS is an appeal from a judgment of Happell, J., under Clause 15 of the Letters Patent. The question involved is one of construction of Section 78(2) of the Provincial Insolvency Act, 1920.

(2.) ON the 25th February, 1933, the appellant obtained a decree against the respondent for the payment of Rs. 1,148 -6 -8 and costs. During the pendency of the suit the respondent applied to the Court of the Subordinate Judge of Bapatla for his adjudication in insolvency and on the 4th July, 1933, an order of adjudication was passed. The respondent was given one year in which to apply for his discharge. He did not make the application and on the 11th November, 1934, a creditor applied for the annulment of the order of adjudication under Section 43 of the Act. On the 21st November, 1934, the Court annulled the order of adjudication and under Section 37 passed an order vesting the insolvent's property in the Official Receiver for administration for the benefit of the creditors. On the 12th April, 1935, the appellant tendered proof of his debt which the Official Receiver accepted. In the year 1939, the amount was, however, scaled down to Rs. 663 -3 -8 under the provisions of the Madras Agriculturists' Relief Act.

(3.) SECTION 78(2) of the Provincial Insolvency Act reads as fellows: