LAWS(MPH)-2004-3-23

SUSHILADEVI Vs. SHEETALPRASAD

Decided On March 15, 2004
SUSHILADEVI Appellant
V/S
SHEETAL PRASAD Respondents

JUDGEMENT

(1.) This order shall also govern disposal of Misc. Appeal No. 354/1996 (Sushiladevi & Ors. v. M/s. Bapulal Balkrishna & Others) and Misc. Appeal No. 366 /1996 (Sushiladevi & Ors. v. M/s. Prahladrai Prakashchandra & Ors.), as they arise out of common order passed by 1st Additional District Judge, Neemuch, in Insolvency Cases Nos. 1/1980, 2/1980 and 3/1980, decided on 3-4-1996. Contesting parties appearing before us today, submitted that all the aforesaid three matters have been settled but looking to short but interesting question involved in these appeals, it is necessary to narrate factual matrix of the case.

(2.) A firm M/s. Shrikrishna Oil Mill and Ginning Factory was carrying on its business from Neemuch having two partners in the same namely; Harnarayan and Gopikishan. Both of them had share in the said partnership for profit and loss to the extent of fifty per cent each. It appears that said Firm ran into financial difficulties. It was not able to pay debts to its creditors. Three of such creditors filed application before aforesaid Court, u/S. 9 of Provincial Insolvency Act, 1920 (for brevity shall be referred to herein as, "the Act") against the partnership Firm i.e., Shri Krishna Oil Mills and Ginning Factory - respondent No.3 herein; senior partner Shri Harnarayan respondent No.4 herein; and, another partner shri Gopikishan for adjudicating them as insolvent. During the pendency of said Petition filed by creditors and before their adjudication, one of the partners namely; Gopikishan died.

(3.) On his death, LRs of said Gopikishan i.e. present appellants - his widow and three sons - moved application purporting to be one filed "under Order 1, Rule 10 of CPC for being joined them as respondents in the said insolvency proceedings. Those applications were opposed by the partnership Firm as well as by creditors.