PAVITHRA AGENCIES Vs. JAYASHREE P KHAKRI

JUDGEMENT

(1.) THIS is an Application to set aside the Insolvency Notice No.26 of, 2006 filed under Section 9(2) of the Presidency Towns Insolvency Act, III of 1909.

(2.) MR. V. Srinivasan, learned counsel appearing for the applicants/judgment-debtors, against whom the insolvency proceedings were taken, submitted that merely because a notice after decree was sent by the respondent/petitioning creditor to the applicants/judgment-debtors, it cannot be found that act of insolvency was committed by them. It was further submitted that all the ingredients under Section 9(2) of the Presidency Towns Insolvency Act, 1909 should be established.

(3.) MR. T. Srikanth, learned counsel appearing for the respondent/ petitioning-creditor submitted that under Section 9(5) of the same Act, the Insolvency Notice issued by the Creditor to the Debtors indicating the act of insolvency can be set aside only on the ground of there being: (i) a counter claim by the debtors (ii) set off claim by the debtors and (iii) question of jurisdiction of the Court.