PUNJAB NATIONAL BANK Vs. K MURUGAPIRAN

JUDGEMENT

(1.) This Insolvency Petition is filed under Sections 9 to 13 of the Presidency Towns Insolvency Act, to adjudicate the Debtors as Insolvents and to direct the estate of the debtors to be vested in the Official Assignee for the benefit of the general body of creditor.

(2.) This insolvency petition has been filed by the decree holder/ Bank seeking to adjudicate the respondents as insolvents for their failure to pay the decreed debt as per Section 9(2) of the Presidency Towns Insolvency Act.

(3.) It is the case of the petitioning creditor that the respondents/ debtors had borrowed monies from the Bank. Upon their failure to repay the said monies, the Bank had filed a suit in O.S.No.9301 of 2006 seeking recovery and the said suit was decreed on 05.12.2007. Even after passing of the decree, the debtors herein failed to pay the decree amount which resulted in the Bank filing an application in I.N.No.29 of 2010 seeking to issue an insolvency notice to the debtors. This Court had ordered the said I.N.No.29 of 2010, pursuant to which the insolvency notice was sent to the debtors by a registered post with acknowledgment due. The said insolvency notice was served on the 1st debtor on 24.06.2010. Since the 2nd debtor could not be served by regular mode of service, publication was effected in "Malai Murasu" on 109.2010. Claiming that even after such service of insolvency notice, the debtors had not come forward to pay the decreed debt, the Bank has come forward with this insolvency petition.