AWDH BEHARI SINGH Vs. SAIFUDDIN KHAN AND ORS.

JUDGEMENT

(1.) This appeal arises out of a proceeding under the Provincial Insolvency Act, 1920.

(2.) The respondents Nos. 2 and 3 were included in the list of scheduled creditors of the respondent No. 1 by the Insolvency court upon proof of their debts. The Appellant on July 2, 1969 entered appearance and filed an affidavit with the promissory note and prayed for inclusion of his name in the list of scheduled creditors. Before any order was passed by the court about the proof of the debt by the appellant, dividend was declared in favour of the respondents 2 and 3 for Rs. 6,000.00 by an order dated July 25, 1969. The appellant filed an application praying for setting aside the said order. The court below however, dismissed the said applications on a finding that as the debt of the appellant was yet to be proved the dividend could not be declared also in his name as prayed for by him. Hence this appeal.

(3.) The only question that requires to be determined is whether the dividend should have been declared in favour of the Appellant along with the Respondents nos. 2 and Sec. 63 of the Provincial Insolvency Act provides as follows :