LAWS(BOM)-1979-7-14

VIJAY JETHALAL SHAH Vs. LAJA NANDLAL RAHEJA

Decided On July 17, 1979
VIJAY JETHALAL SHAH Appellant
V/S
LAJA NANDLAL RAHEJA Respondents

JUDGEMENT

(1.) The Petitioning Creditors are the heirs of one Nandlal Raheja who obtained a decree on admission against the judgment-debtor in the Bombay City Civil Court in Summary Suit No. 8300 of 1973 for Rs. 16,247.02 and for other reliefs mentioned in the decree on admission. This decree was obtained on the 7th of Feb. 1974. The judgment-debtor was the 2nd defendant in the suit. A similar decree was also obtained against defendant No. 3. The suit against the 1st defendant is still pending in the City Civil Court at Bombay. After the passing of the decree, some time in October 1976, Nandlal Raheja, the decree-holder, died. The petitioning creditors who are the heirs of Nandlal have been brought on the record of the suit which is still pending against the 1st defendant on or about the 21st of February 1977. Prior to the death of Nandlal. he had obtained an order under Order 21, Rule 22 of the Civil P. C. for execution of the decree. Notice under Order 21, Rule 22, was made absolute on the 8th of October 1976. Nandlal died thereafter and the petitioning creditors who are his heirs took out an insolvency notice against the judgment-debtor on the 1st of November 1977. No steps were taken by the judgment-debtor to have the insolvency notice dated the 1st of November 1977 set aside. Thereafter, the petitioning creditors filed the present petition dated the 3rd of March 1978 for an order of adjudication. The judgment-debtor has resisted this petition on the ground that the petitioning creditors, without obtaining representation to the estate of the deceased judgment-creditor, are not entitled to file a petition for an order of adjudication against the judgment-debtor.

(2.) The act of insolvency on the basis of which the present petition has been filed is non-compliance on the part of the judgment-debtor with the insolvency notice dated the 1st of November 1977. Under Section 9, Sub-section (i), of the Presidency Towns Insolvency Act, as amended by Bombay Act 51 of 1948, it is laid down as follows:--

(3.) Section 9(i) is based on the provisions of Section 1, Sub-section (i) (g) of the English Bankruptcy Act, 1914. Although under Section 9(i) the words used are