K KONDA REDDY Vs. K THIRUPALAMMA

JUDGEMENT

(1.) The appeal is filed against the Judgment in Appeal Suit No. 83 of 2005 on the file of the I Additional District Judge, Anantapur arising out of the Insolvency Petition No. 35 of 2001 on the file of the Senior Civil Judge, Gooty.

(2.) The application was filed by the appellant herein to declare respondents Nos. 1 and 2 as insolvents on the ground that the 1st respondent has borrowed money from the appellant herein and respondents Nos. 1 and 2 have transferred the properties to defeat his rights and therefore, an act of insolvency was committed. The lower Court has allowed the application and aggrieved by that order, the 2nd respondent in the main insolvency petition, who is the 1st respondent herein, filed the appeal and the appeal has been allowed by the learned I Additional District Judge on the legal aspect that the application is barred by time without going into other merits of the contention of the 1st respondent herein as to whether she can be declared as insolvent or not when she was not a debtor of the appellant herein.

(3.) The learned counsel for the appellant contends that the order of the lower Court holding that the application is barred by limitation is not correct. Admittedly, as per the provisions of Section 9 of the Provincial Insolvency Act an application to declare a person as insolvent shall be filed within a period of three months from the date of act of insolvency. The act of insolvency, evidently, in this case is on 08.06.2001. The application was filed on 07.09.2001. The lower appellate Court has considered that the period of limitation is 90 days and consequently, the application having been filed after a period of 90 days is barred by time.