CHANNA DHANALAKSHMI Vs. RAJYALAKSHMI GENERAL TRADERS

JUDGEMENT

(1.) This Civil Miscellaneous Second Appeal is filed challenging the Decree and Judgment dated 31.03.2010 in A.S. No.43 of 2008 on the file of V Additional District Judge (Fast Track Court), Guntur, whereby the Order passed by the Additional Senior Civil Judge, Tenali, in I.P. No.2 of 2004, dated 28.11.2007, was confirmed.

(2.) For convenience of reference, the ranks given to the parties before the Additional Senior Civil Judge, Tenali, will be adopted through out the Judgment.

(3.) The petitioner filed insolvency petition under Sec. 9 of the Provincial Insolvency Act, 1920 (for short, 'the Act, 1920') to adjudge respondents 1 to 3 as insolvents and to appoint an Interim Receiver or the Official Receiver to administer the properties of respondents 1 to 3, alleging, that the first respondent is partnership firm, consisting of respondents 2 and 3, carrying on wholesale business in tamarind and other items. Representing the firm - the first respondent, the 2nd respondent borrowed an amount of Rs.95,000.00 from the petitioner on 01.01.2002 with the consent of the 3rd respondent for business purpose, executed promissory note with his own handwriting agreeing to repay the same with interest @ 18% per annum (compound interest) either to the petitioner or to her order on demand. Despite the demands made by the petitioner, the respondents 1 to 3 failed to discharge the debt due to the petitioner, though the respondents 2 and 3 jointly and severally liable to discharge the debt due by the first respondent.