GUTTA NIRMALA Vs. GUTTA NAGESWARA RAO

JUDGEMENT

(1.) THIS is a revision preferred under the second proviso to Section 75 of the Provincial Insolvency Act, 1920 (for short 'the Act'), as extended to the State of Andhra Pradesh under the Provincial Insolvency (Andhra Pradesh extension and Amendment) Act, 1965.

(2.) THE revision is directed against the judgment and decree dated 23-3-2006 of the learned II-Additional District Judge, West Godavari District at Eluru in A.S.No. 169 of 2001, reversing the judgment and decree in I.P. No. 7 of 1998 dated 14-8-2001 passed by the learned Additional Senior Civil Judge, Eluru. THE appellate Court allowed the appeal; set aside the order of the trial Court adjudged the 1st respondent as insolvent; and appointed the Official Receiver, West Godavari District as Receiver to administer the petition schedule properties. THE facts leading to the Revision:

(3.) NAGESHWAR Rao in his counter denied having borrowed Rs. 40,000-00 in January, 1997 or on any other date; denied execution of the promissory note; claimed that the insolvency petitioner had contrived the promissory note by using his blank signatures on a promissory note furnished by him as collateral security in connection with his paddy commission business; claimed to have sold the plaint schedule property in public knowledge including of the insolvency petitioner, for discharging his general debts including those due to the insolvency petitioner and denied having committed acts of insolvency.