VALLABHANENI BUCHIRAMAYYA Vs. DAVLAPATLA MARIYYA

JUDGEMENT

(1.) This appeal raises a question relating to the interpretation of Section 6 (e), of the Provincial Insolvency Act, 1920.

(2.) The material facts leading to; this appeal may be briefly set out. The respondents owed the appellants certain sums Of money on promissory notes and some others and some of the creditors filed suits against the respondents for recovery of the money and obtained decrees against them. In execution of one of such decrees, their property was brought to sale on 31/08/1954 and it was purchased by one Punniah. Shortly, thereafter, the appellants presented a petition in the District Court, West Godavari, under Section 7 to adjudicate the respondents as insolvents basing it inter alia on the sale of the property in execution of the decree. Pending disposal of this petition, the sale was set aside under Order 21 Rule 89 C.P.C.

(3.) The petition was opposed by the respondents on the ground that they had not committed an act of insolvency within the meaning of Section 6 Sub-clause (e) as the sale was set aside.