KARAM SINGH NATHA SINGH Vs. MOHINDER LAL BATTA

JUDGEMENT

(1.) The facts giving rise to this second appeal in an insolvency case; are these:

(2.) Brij Lal, Respondent 3, was adjudged an insolvent on a petition presented by creditor Kabil Mal, Respondent 2, on 25.12.2005/4.4.1949. Before adjudication but after the presentation of the petition, Brij Lal sold the shop in question, situate in Mandi Ahmedgarh, to Nazir Singh and Bachan Singh sons of Sobha Singh for Rs. 6000/-. The sale-deed was executed and registered on 13.7.1949. Nazir Singh and Bachan Singh in their turn sold the shop to Karam Singh Appellant for Rs. 6500/-. This took place on 31-1-1950. After the adjudication Shri Mohindar Lal, Respondent 1, the Receiver, succeeded in getting possession of the shop on 26.11.1954. Karam Singh Appellant then approached the Insolvency Court with the present objection-petition alleging that Brij Lal was no longer the owner and hence the Receiver was not entitled to oust him or to take possession of the shop. The objection-petition was dismissed by the trial Sub-Judge and the order was confirmed in appeal by the District Judge. This is the further appeal filed by Karam Singh.

(3.) An order of insolvency denudes the insolvent of all right, title and interest to and in the property that once belonged to him. On the order of adjudication, the property vests in the Court or the Receiver. Sub-section (7) of Section 28, Provincial Insolvency Act further lays down that an order of adjudication shall relate back to and take effect from the date of the presentation of the petition on which It is made.