RAM LACHMAN Vs. J.K. KAPOOR

JUDGEMENT

(1.) JUDGEMENT This appeal arises out of an order passed in the Insolvency Judge refusing annulment of alienation of his property by the insolvent on the 4th of July, 1950. On appeal, this order was set aside by the learned District Judge and the transfer was annulled. The transferee Ram Lachman has come up to this Court in appeal.

(2.) THE facts may be shortly stated which are not in controversy. Brahma Shankar and others, who were creditors of Bishambhar Nath filed an application for adjudging Bishambhar Nath an insolvent on the 3rd of October, 1950. In that application, they alleged that the judgment-debtor Bishambhar Nath had transferred all his property on the 4th of July, 1950 to favour of Ram Lachman. This transfer was with the object of delaying and defeating the creditors. This application was not opposed and on the 19th of January, 1951, Bishambhar Nath was declared insolvent. On the 4th of February, 1952, the Official Receiver filed an application under Section 53 of the Provincial Insolvency Act for annulment of the transfer, elated the 4th of July, 1950 in favour of the appellant Ram Lachman. The appellant pleaded that he was a bona fide purchaser in good faith and for valuable consideration and the transfer could not be annulled. The learned Insolvency Judge went into the evidence adduced by the parties and came to the conclusion that the appellant was a bona fide purchaser for value and in good faith. He, therefore, refused to annul the transfer and dismissed the application made by the Official Receiver, on the 3rd of December, 1954. Against that order, the Official Receiver went up in appeal before the learned District judge find contended that the learned Insolvency judge was wrong in going into the facts and evidence at that stage.

(3.) WE will therefore proceed to consider the provisions of the Provincial Insolvency Act and then deal with the case law which has been cited before us by the learned counsel for the appellant.