GANGADHAR REVAPPA UMBARANIKAR Vs. SHANKAR VITHOBA GHOLASGAONKAR

JUDGEMENT

(1.) THIS is an appeal against the appellate judgment dated July 31, 1965 of the learned District Judge, Sholapur, It arises out of the sale of a house belonging to an insolvent. One Ramchandra Pralhad Naik was adjudged an insolvent in Insolvency No. 24 of 1954 and respondent No. 3 was appointed Receiver in Insolvency. At an auction sale of the house of the insolvent on June 14, 1964 the property was knocked down to the appellant in this appeal. Respondents No. I and 2 are two of the creditors of the insolvent who objected to the sale in favour of the appellant and applied to the Insolvency Court for the sale being set aside. The Insolvency Court dismissed their application as time barred. They appealed to the District Court at Sholapur. On appeal the District Court set aside this sale in favour of the appellant and on December 5, 1965 at a fresh auction, the property was knocked down to respondent No. 4. Respondent No. 4 was added as a party respondent after this appeal was filed. Mr. Khare appearing for respondent No. 3 has stated that he has instructions to submit to the orders of this Court.

(2.) THE appellant is a tenant of the house which is the subject -matter of this litigation. This house is situated on city survey No. 810 in the town of Akalkot. At the auction held by the Receiver on June 14, 1964 the appellant was found to be the highest bidder and was so declared. His bid was for Rs. 4,200. It appears that some of the creditors of the insolvent were not satisfied with this sale and protested to the Receiver that the price fetched was too low. The Receiver gave them one month's time to find a person who was willing to offer more than Rs. 4,200. The creditors were unable to find such buyer. On July 15, 1964 the Receiver made a report to the Court about the sale stating therein that he had carried out the sale after getting the sanction of the Court and that the appellant was found to be the highest bidder and therefore the sale be confirmed. On July 21, 1964 the learned Civil Judge passed an order reading, 'Read report. The sale by the Receiver is approved. The receiver to take further steps.' On July 21, 1964 the Receiver executed and got registered the necessary sale deed in favour of the appellant.

(3.) THE Insolvency Court dismissed this application on October 14, 1964 as time barred. It held that the application was an appeal to the Court against the act of the Receiver and that such appeal is required to be made within 21 days and as the appeal was not filed within 21 days after the sale was approved by the Court, it was time barred. Against the said decision only two of the creditors of the insolvent, namely, respondents Nos. 1 and 2, appealed to the District Court at Sholapur.