UNION OF INDIA Vs. SHANTILAL JEWELLERS

JUDGEMENT

(1.) NONE appears for the appellants.

(2.) THE appeal is, accordingly, liable to be dismissed in default.

(3.) EVEN otherwise, we are satisfied that there is no merit in the appeal. The respondents 1 to 4 herein were adjudicated insolvents in the insolvency proceedings under the Presidency Towns Insolvency Act, 1909 on 3-11 -1987. The Official Assignee took over the assets of the insolvents and auctioned the properties of the insolvents. The sale proceeds thereof came in the hands of Official assignee. The Tax Recovery Officer No. 7, bombay made a claim of Rs. 41,09,658/- on 12-1-1995 before the Official Assignee. Out of the said claim made by the Tax Recovery officer the claim of Rs. 35,02,277/- was rejected by the Official Assignee against the estate of insolvents. The reason for such rejection was that such claim was not provable under Section 46 (3) of Presidency Towns insolvency Act as it was necessary that claim should pertain to the liability to which the debtor was subject when he was adjudged as insolvent or such claim to be pertaining to the obligation incurred by him before the date of adjudication. Aggrieved by the order of Official Assignee dated 25-7-1995 rejecting the claim of Rs. 35,02,277/-, the present appellants took out notice of motion being notice of motion No. 102/1995 The learned single Judge, by the order dated 16-1-1996, upheld the order of the Official Assignee. Aggrieved thereby the present appeal has been preferred. Section 46 (3) of the Presidency towns Insolvency Act reads thus : 46. Debts provable in insolvency. (1)and (2 ). . . . . . . . . . . . . . (3) Save as provided by sub-sections (1)and (2), all debts and liabilities, present or future, certain or contingent, to which the debtor is subject when he is adjudged an insolvent or to which he may become subject before his discharge by reason of any obligation incurred before the date of such adjudication, shall be deemed to be debts provable in insolvency. "