BASESHWAR DAYAL Vs. BHAGWATI DEVI

JUDGEMENT

(1.) THESE four Civil Revisions under Section 75 of the Provincial Insolvency Act, 1920 (Act 5 of 1920) can be disposed of by one judgment.

(2.) L. Bisheshwar Dayal and Dhanushdhari Kirpal were adjudicated insolvents in the year 1928. The Official Receiver in possession of the estate of the insolvents paid by instalments a sum of rs. 28,678/- odd to the creditors of the insolvents. The total debts entered in the schedule amounted to Rs. 1,49,190/- odd. The insolvency proceedings had been pending till 1945 and the insolvents, it is said, approached a relation or friend of theirs who advanced them a substantial sum of money and from that amount the insolvents paid a total sum of Rs. 69,928/- odd to some of the creditors in full satisfaction of their debts, Debts to the extent of Rs. 47,611/- odd entered in the schedule remained unpaid and as the creditors refused to accept the amount out of Court that amount was deposited in Court and in November, 1945 an application for annulment of the adjudication was made on behalf of the insolvents on the ground that all the debts by reason of the deposit of Rs. 47,611/- odd must be deemed to have been paid up in f ull.

(3.) THIS application was opposed by certain creditors and on 29-3-1946 the learned Civil Judge exercising insolvency powers came to the conclusion that the adjudication could not be annulled unless the insolvents paid a certain further amount so that interest payable to all the creditors during the period of adjudication could also be paid up. On 26-4-1946 the insolvents filed an application for review which was granted by the learned Judge on 8-5-1946. Against the order granting the review application, four appeals by four sets of creditors were filed in the Court of the learned District Judge who allowed these appeals on 25-1-1947. The learned Judge held that grounds of granting review bad not been made out and the learned Civil Judge exercising insolvency powers should not have therefore granted the application of 26-4-1946. Even on the merits the learned District Judge was not satisfied that all the creditors had been paid in full.