MADRAS DOCK LABOUR BOARD Vs. P THANDAVAKRISHNA NAIDU

JUDGEMENT

(1.) This application is filed by third-party-creditors of the insolvent under section 17 of the Presidency Towns Insolvency Act, for grant of leave to them to prosecute the suit C.S.No.379 of 1978 on the file of this Court against the insolvent, who is arrayed as the 1st respondent.

(2.) It is averred in the affidavit filed in support of the application that the 1st applicant is Madras Dock Labour Board and the 2nd applicant is the Administrative Body, constituted by the Government of India under the Madras Dock Workers (Regulation and Employment) Scheme, 1956. They filed the suit O.S.No.379 of 1978 on the file of this Court against Messrs. P.Devarajulu Naidu and Sons and three of its partners, namely, the insolvent P.Thandavakrishna Naidu and two others for recovery of Rs.1,99,789.95. While the suit was pending, the first respondent was adjudicated insolvent in I.P.No.34 of 1981 on 22.4.1981 by this Court. The applicants also filed a claim before the Official Assignee, the second respondent herein, in Claim No.8 of 1983 and the claim is pending before the second respondent. It is further averred that since the suit is ripe for trial, they have to proceed against all the defendants, including the insolvent, who are jointly and severally liable for the amount in the said suit and hence they seek for leave to prosecute the suit against the insolvent.

(3.) The said application was resisted by the insolvent as well as the Official Assignee. The first respondent filed a counter-affidavit and the second respondent filed a report.