NIYATI BHUSAN TA Vs. BEJOY CHANDRA GHOSH

JUDGEMENT

(1.) This appeal arises out of an insolvency petition filed by the respondents of this appeal against appellant Niyati Bhusan Ta in the Court of the learned District Judge of Hooghly.

(2.) The main allegation of the petitioning creditors was that the appellant had borrowed a sum of Rs. 2,000/- from each of them and executed a promissory note in favour of each agreeing to pay interest at the rate of 10 p. c. p. a. These handnotes are said to have been executed on 30th Chaitra, 1358 B. S. corresponding to 12-4-1952. The allegation of the petitioning creditors was that the appellant had become seriously involved in debts and he had many other creditors and he was not in a position to pay off either the petitioning creditors or those other creditors. The allegation of the petitioning creditors further was that in order to defeat and delay his creditors the debtor had executed two sale-deeds, one on 17-6-1952 and another on 18-6-1952 in the names of two of his friends. The application was filed on 15-9-1952.

(3.) Before dealing with the objection filed by the appellant debtor we may mention that another creditor, viz., Kasi Nath Singha Boy made an application for joining in the petition and for entering his name as a scheduled creditor. Subsequently he withdrew his application alleging that his claim was going to be time-barred and so he wanted to institute a suit. This application was allowed by the Court.