G RAMACHANDER Vs. COLLECTOR EXCISE HYDERABAD

JUDGEMENT

(1.) The Civil Miscellaneous appeal is directed against the order of the Additional Judge, City Small Causes Court, Hyderabad, dismissing an application filed by a debtor under Sub-section 6, 7 and 10 of the Provincial Insolvency Act, 1920. The learned Judge, in so dismissing the petition followed the decision of a single Judge of this Court in M. Somaiah v. P. Padma Bai (1969-2 Andh WR 274).

(2.) The question that falls for consideration in this civil miscellaneous appeal is whether a debtor is precluded from filing an application for adjudication if there is only a single creditor. The appellants is working in Sagar Sanitary Works, Secunderabad. He was the highest bidder at an auction held for the issue of licence for a today shop at Kavadiguda, Hyderabad. He bid at that auction at the instance of one Eswaraiah. Eswaraiah was managing the business along with the appellants. A relation of his financed the business. According to him, he never looked into the accounts, with the result that the business resulted in loss and he could not pay arrears of rentals to the tune of Rs. 86,000. As he was not in a position to pay arrears due to the respondents (the Collector of Excise and Superintendent of Excise), he filed the application for adjudication as an insolvent. The application was opposed by the respondents, on the grounds that he is possessed of moveable and immoveable properties and that he deliberately concealed those properties.

(3.) The only question that fell for consideration before the Court below was whether the appellants was entitled to be declared an insolvent. As already pointed out, relying upon the decision of this Court referred to above, the learned Additional Judge dismissed the application.