RAM GOPAL Vs. OFFICIAL RECEIVER JUDGES COURT

JUDGEMENT

(1.) This is an appeal against the appellate order of the Court below by which a certain sale deed of zamindari property has been annulled as against the sons of one Manik Chand who were adjudged insolvents by the Insolvency Court.

(2.) The appellants, Ram Gopal and others, purchased zamindari property in three villages, viz,, Imlani, Ekri and Mai, under a sale deed executed on 7th January 1938, by Kewal Ram, Jai Kishan Das and the sons of Manik Chand. Thereafter on 7th April 1938, Ganga Prasad, a creditor of the sons of Manik Chand, applied for their insolvency. On 6th March 1941, the sons of Manik Chand were adjudged insolvents. This order of adjudication was affirmed in appeal on 16th December 1942. On 20th September 1943, the receiver in insolvency applied to the Insolvency Court for annulment of the sale deed executed on 7th January 1938. This application was made Under Section 54, Provincial Insolvency Act, on the ground that the creditors were shown undue preference by reason of the sale effected in their favour.

(3.) On a consideration of the matter, the Insolvency Judge annulled the sale deed dated 7th January 1938, in its entirety i.e., as against Kewal Ram and Jai Kishan as well.