ZAHID HUSSAIN Vs. B KHAIRATI LAL JAIN

JUDGEMENT

(1.) THIS is an appeal under Section 75 of the Provincial Insolvency Act (Act No. V of 1920), A creditor Khairati Lal applied on the 30th July, 1931, that Sh. Zahid Husain be adjudicated an insolvent. On the 14th November, 1931, an order of adjudication was passed. The creditors were all paid up in full and on the loth March, 1948, the insolvent was discharged. A sum of Rs. 22,000, however, after payment of all the debts in full, remained in the hands of the Official receiver and the creditors claimed that interest from the date of adjudication at the rate of 6 per cent. per annum might be allowed to them in accordance with the provisions of Section 48 of the act. The creditors also claimed that prior to the date of adjudication they should be given interest at the contractual rate.

(2.) THE learned Insolvency Judge granted the request that interest at 6 per cent. per annum should be allowed from the date of adjudication. As a matter of fact, he had no option in the matter as the provisions of section 61 (6) were mandatory.

(3.) AS regards interest prior to the date of adjudication, he did not allow any interest to Ruqayya khatoon, the wife of the insolvent, who had claimed a sum of Rs. 10,000/- as her dower, but he allowed interest to the other creditors at the rate of 6 per cent. per annum. Two of these creditors, bansi Dhar and Khairati Lal, have filed cross-objections and the others have submitted to the order.