OFFICIAL RECEIVER PRAKASHAM DISTRICT Vs. VARRA NAGI REDDY

JUDGEMENT

(1.) The order of the learned Principal Subordinate Judge, Ongole in E.A.No.509 of 1997 in E,P.No.20 of 1994 connected with O.S.No-12 of 1987 is challenged.

(2.) Petitioner is the Official Receiver of Prakasham district. He filed an application to stop the sale of the schedule property which was brought for sale in the execution proceedings by the 1st respondent. It was contended that the 2nd respondent was making hectic efforts to stop the sale and to cause delay in the realisation of the decree amount. The learned Subordinate Judge after hearing both sides came to the conclusion that there is no merit In the petition as the sharers of the other judgment-debtors are not going to be affected. The petition was thus closed with the observations saying that there is no need to stop the sale at that stage and permit the 2nd respondent to succeed in his attempts to prolong the litigation or to delay and defraud the 1st respondent in realisation of the E,P. amount.

(3.) The learned advocate for the petitioner has contended that by virtue of Section 52 of the Provincial Insolvency Act, 1920 (in short the 'Act'), the receiver is entitled to get the possession of the property of the Judgment Debtor to deal with accordingly subject to the rights of the creditors to be fulfilled after realisation of the amounts by the receiver by selling the property etc. The learned advocate for the 1st respondent has contended that since the Judgment Debtor had only a share in the properties sought to be sold and there were other sharers, the delivery of possession to the official receiver would have materially prejudiced the right of the decree holder and put the Judgment Debtor to the advantage to avoid the possession of the property thereby causing delay in the execution of the decree.