KANAK SUNDER BIBI Vs. RAM LAKHAN PANDEY

JUDGEMENT

(1.) These two miscellaneous appeals arise from a common insolvency proceeding against two insolvents, Pawananjai Kumar Jain and his son Raj Kumar Jain, and are directed against a common order, dated 12-4-1954, passed by the insolvency court at Arrah whereby it has under Section 53, Provincial insolvency Act annulled two deeds of gift dated 1-7-1939 and 5-5-1939 both executed by the common insolvent Pawananjai Kumar Jain, the former covering all his properties that were still owned and possessed by him on that date in favour of his sister Kanak Sunder Bibi and the latter, which is prior in date, covering only the zamindari interest in one village bearing touzi No. 6215 in favour of his mistress Janki Kaharin, who subsequently sold that property by a registered deed of sale dated 9-9-1949, for a sum of Rs. 3800/- to one Hardeo Pandey in the name of his minor son Ramdeo Pandey. Miscellaneous Appeal No. 133 of 1954 is on behalf of the donee Kanak Sunder Bibi and the other miscellaneous appeal is on behalf of the purchaser from the other donee Janki Kaharin. There is also a cross-objection in Appeal No. 133 of 1954 on behalf of the other insolvent Raj Kumar Jain praying therein that the deed of gift dated 1-7-1939, in favour of .Kanak Sunder Bibi should not only have Been annulled under Section 53 but should have been held to be sham and void transaction under Section 4, Provincial Insolvency Act.

(2.) The application for insolvency of the two insolvents was originally filed on 2-1-1940 by two of the creditors of Pawananjai Kumar Jain, namely, (1) Nirmal Kumar Jain and his brother, and on that application both the father and the son Pawananjai Kumar Jain and Raj Kumar Jain were adjudged insolvent on 18-6-1941. In the meantime, by the order of the High Court dated 22-4-1940, Mr. Ram Lakhan Pandey, Pleader, had been appointed as an ad interim receiver on 29-4-1940. This receiver after the adjudication on 1-8-1941, applied for the annulment of the aforesaid two deeds under Section 53, Insolvency Act and also for an adjudication under Section 4 of that Act that the two deeds of gift were void. So far as the application for the annulment of the gift in favour of Janki Kaharin was concerned, it appears from the judgment of the court below that it was not contested at any stage in the insolvency court either by the donee or by the purchaser from her. It was the application regarding the other gift alone that was contested and that by Kanak Sunder Bibi. Her contentions made at the time of the hearing in support of her opposition were, amongst others:

(3.) The court on hearing the parties has annulled both the deeds of gift under Section 53, Insolvency Act, but refused to consider its validity under Section 4 of the Act. On this point the order passed is: