NARENDRA KUMAR JAIN Vs. DISTRICT JUDGE MORDABAD

JUDGEMENT

(1.) This writ petition is directed against the order dated 7.9.2000 passed by respondent No. 2 rejecting the Insolvency petition filed by the petitioner and the order of the appellate court dated 1.3.2001 affirming the said order in appeal.

(2.) Briefly stated, the facts are that Punjab National Bank, Branch Station Road, Moradabad, respondent No. 3, (in short the 'Bank') filed suit No. 717 of 1991 for recovery of amount against the petitioner as well as M/s. Shivalik International and others. The suit was decreed on 10.2.1992 for Rs. 20,72.000.

(3.) The petitioner filed an insolvency petition before respondent No. 2 for declaring insolvent with the allegation that Rs. 20,72.000 is due to Punjab National Bank. He has 1/72 share in the house situate in Seohara Town, district Bijnor, the value of which is hardly Rs. 1,000 and his wearing clothes and other assets are valued at Rs. 2,000. The bank raised an objection that insolvency petition is not maintainable against the bank in view of Section 8 of the Provincial Insolvency Act, 1920, which reads as under :