LAWS(PAT)-1979-1-8

RAGHUNATH PRASAD Vs. BAIJNATH DWIVEDI

Decided On January 04, 1979
RAGHUNATH PRASAD Appellant
V/S
BAIJNATH DWIVEDI Respondents

JUDGEMENT

(1.) The debtor preferred this appeal under Section 75 (2) of the Provincial Insolvency Act (Act V of 1920) (hereinafter to be referred to as the Act) against the order dated 12-9-1977, passed by the First Additional District Judge, Chapra.

(2.) The debtor (appellant) filed an application under Section 10 of the Act for being adjudged as insolvent. During the pendency of the insolvency proceeding respondent Baijnath Dwivedi filed an application for including his name in the schedule of the creditors. It is said that the debtor Raghunath Prasad and his sons contracted to sell their house with Baijnath Dwivedi for Rs. 21,000/-. To this effect the debtor and his sons entered into a contract on 24-3-1969. On 24-3-69 Baijnath Dwivedi advanced Rs. 11,000/-in pursuance of the contract to Raghunath Pd. and Raghunath Pd. executed a Mahandanama in this respect. It is also agreed that Rs. 8000/- would be paid by Baijnath Dwivedi to the three creditors namely Mahendra Pd., Advocate, Badri Narain Singh and Dr. Sushila Devi. It was also agreed that balance of Rupees 2,000/- would be paid at the time of registration. It was further alleged by Baijnath Dwivedi that the debtor did not carry out the terms of the contract and as such he filed a title Suit No. 166 of 1969 for specific performance of contract dated 24-3-1969. The aforesaid title suit was decided on the 30th April, 1977 by the Second Additional Sub-Judge, Chapra. By this judgment the Second Additional Sub-Judge, Chapra awarded Rs. 19,000/-as compensation to Baijnath Dwivedi. It is on the basis of this judgment respondent Baijnath Dwivedi filed an application before the Insolvency Court that his name should be included in the list of creditors.

(3.) On these facts the Insolvency Court directed that Baijnath Prasad be added as a creditor in the insolvency petiton.