TUMMALACHERLA SRINIVASA RAO Vs. KRISHNA TULSI THEATRE

JUDGEMENT

(1.) This second appeal arises out of insolvency proceedings launched by the debtor - appellant against the first respondent which is a partnership firm called Sri Krishnatulasi Theatre, represented by its managing partner together with all partners. Both the Courts below dismissed insolvency petition filed by the debtor on various grounds including on the ground of non-maintainability. Insofar as maintainability of insolvency petition under the Provincial Insolvency Act, 1920 is concerned, the view taken by the lower Courts is in accordance with law.

(2.) The appellant's counsel placed reliance on "FIRM MUKUND LAL VEERKUMAR v. PURUSHOTTAM SINGH, 1968 AIR(SC) 1182" on this aspect. The relevant adjudication by the Supreme Court on this point is reflected in the following paragraph.

(3.) Even though an insolvency petition against a firm - debtor is maintainable under Section 99 of the Presidency-towns Insolvency Act, 1909, there is no provision akin to the said provision in the Provincial Insolvency Act, 1920. Section 79(2)(c) of the Act of 1920 provides for rules to be made by the High Court as to the procedure to be followed when the debtor is a firm. Alhabad High Court made relevant rules under the said provision making provision for adjudication of a firm - debtor, as insolvent. In the State of Andhra Pradesh, there are no similar rules framed by the High Court of Andhra Pradesh under Section 79(2)(c) of the Act of 1920. Therefore, an insolvency petition cannot be filed and entertained for the relief of adjudicating a firm - debtor as insolvent in the State of Andhra Pradesh. In that view of the matter, the above verdict of the Supreme Court has no application to the state of Andhra Pradesh where no rules under Section 79(2)(c) of the Provincial Insolvency Act, 1920 are made in this regard.