OFFICIAL RECEIVER NELLORE Vs. VEERAIAH

JUDGEMENT

(1.) This second appeal arises out of in application filed bv the Official Receiver, Nellone, urder sections 4 and 53 of the PROVINCIAL INSOLVENCY ACT, 1920, to annul She decree in O. S 89 of 1952 of Sub Court, Tenali, and the sal held in execution thereof.

(2.) The Subordinate Judge of 'Bapatla, to whom the application was made invoking his insolvency jurisdiction, allowed the application holding that the decree and the execution proceeding were all collusive. On appeal the learned Addi'ional District Judge held differing from she Subordinate Judge that the decree and the execution proceedings could not be annuled either under section 4 or 53 of the PROVINCIAL INSOLVENCY ACT, 1920. The Official Receiver has preferred this second appeal aggrieved by the dismissal of his application

(3.) The applicatiun was made in the following circumssances : The 4th. respondenc herein Narayya was the insolvent who was adjudged on 19-3-1956 on a creditor's petition filed en 7-2-1956. The said Narayya had earlier executed promissory note dated 21-8-1950 for Rs. 3,100/-in favour of Anandayy, the 3rd respondent endorsed it in favour of Anjayya, the 3'rd, respondent herein. The said Anjayya filed O.S. No. 89 of 1952 in the Sub Court, Tenali, to recover the amount due under the pronote and oba"ined a decree against Narnyya an 29-10-1952 It would appear that Narayya represent to the Court that a decree, could be passed against him. The decree was executed by the KanigiriDistrict Munsiff in whose jurisdiction Narayya had lands Narayya'g lands comprising an extent of Acs. 22-38 cents were sold on 15-2 1955, the highest bidder being the decree holder himself and the decree-holder obtained delivery on 20- 1-1956. Thereafter, as has been said a creditor filed a petition for adjudication of Narayya as an insolvent and he was so adjudicated on 19-3-1956. It would appear that Narayya, the insolvent, was exparte and the petitioning creditor did not examine himself.