PARITALA NARASIMHAM Vs. AYINAMPUDI VENKAYYA

JUDGEMENT

(1.) The Civil Revision Petition arises out of an application filed by the creditor (petitioner herein) for adjudicating the 2nd respondent herein as an insolvent. The 1st respondent herein is a purchaser of the entire properties belonging to the insolvent under a registered sale daed dated 27th December, 194.9 for Rs. 22,500. The alienation was alleged as constituting an act of insolvency. The Subordinate Judge of Vijayawada adjudicated him as an insolvent; but on appeal the District Judge of Krishna at Masulipatnam reversed the judgment and dismissed the petitioner's application. The Civil Revision Petition is consequently filed against the order of the District Judge.

(2.) The questions that arise for consideration in the Civil Revision Petition are (i) Whether the petitioner is a creditor entitled to file the application for adjudicating the 2nd respondent as an insolvent ? (ii) Whether the act of insolvency occurred within three months before the presentation of the petition ? (iii) Whether the 2nd respondent has committed an act of insolvency?

(3.) On the first question, both the Courts held that the petitioner was entitled to file the application. The petitioner obtained a decree against the 2nd respondent on a promissory note endorsed in his favour by Macha Yellamandayya. The petitioner being the holder of a negotiable instrument in respect of which he obtained a decree is a creditor within the meaning of the Act, though the promissory . note was endorsed in .his favour for collection. No authority was cited in support of the proposition that an endorsee for collection has no locus standi to present the' petition as a creditor.