NAGENDRA KUMAR JAIN Vs. DISTRICT JUDGE MORADABAD

JUDGEMENT

(1.) This writ petition is directed against the order dated 7-9-2000 passed by the 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, the respondent No. 3, ('the Bank') filed Suit No. 717 of 1991 for recovery of amount against the petitioner as well as 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 the respondent No. 2 for declaring him insolvent with the allegation that Rs. 20,72,000 is due to Punjab National Bank. He has 1/72nd share in the house situated 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: "8. Exemption of corporations, etc., from insolvency proceedings.--No insolvency petition shall be presented against any corporation or against any association or company registered under any enactment for the time being in force."