R.L.SIVA SUBRAMANI Vs. K.UMAPATHY

JUDGEMENT

(1.) This Insolvency Petition has been filed by the petitioning Creditor. According to the petitioning Creditor, the respondent/Debtor borrowed a sum of Rs.5,00,000.00 (Rupees Five lakhs only) from the petitioning Creditor, on 20/11/2016, and executed a Promissory Note in his favour, promising to repay the said sum, with interest, at the rate of 24% per annum. On 30/6/2018, the Creditor has made demand, to repay the said sum with interest, however, the respondent/Debtor failed to repay the amount. Therefore, the petitioning Creditor had issued a notice to the respondent, on 10/7/2018, demanding repayment of the said amount of Rs.5,00,000.00 with interest at 24% per annum. However, on receipt of the notice on 11/7/2018, the respondent/Debtor has sent a reply on 20/7/2018, admitting the borrowal, and further stating that, since, he has incurred heavy loss in his business, he is not in a position to mobilise the funds to meet his debts, and specifically stated that, he had suspended the payment of amounts to his various Creditors, including the petitioning Creditor.

(2.) Thereafter, the Debtor has also sent a reply, through his lawyer's notice, dtd. 4/8/2018, wherein, once again, he has stated that, he has suspended the payment of amounts to various Creditors, including the petitioning Creditor, and has further asked the petitioning Creditor to wait for sometime. Since, the reply given by the respondent/Debtor clearly shows that, he has already suspended the repayment of the debts to various Creditors, including the petitioning Creditor, he has been in insolvent circumstances. Therefore, he has to be adjudicated, within the meaning of Sec. 9(1)(g) of the Presidency Towns Insolvency Act, 1909. Therefore, this petition has been filed with a prayer, to adjudicate the respondent/Debtor as Insolvent and direct the Official Assignee to take charge of the administration of the estate of the Debtor.

(3.) Though notice has been served on the respondent/debtor, since he has not appeared before this Court, by order dtd. 17/12/2018, the respondent/debtor has been set ex- parte.