GAJANAND Vs. KAILASH CHAND

JUDGEMENT

(1.) THIS appeal arises out of an order dated 5.8.84 passed by the Additional District Judge, Bhilwara Under Section 20 of the Provincial Insolvency Act by which the interim Receiver was appointed in respect of properties mentioned in Schedule B and Schedule C attached with the Insolvency petition moved Under Section 9 of the said Act on 30th April, 83.

(2.) ON 30th April, 83 Kailash Chandra filed an application Under Section 9 of the Provincial Insolvency Act for adjudging respondents No. 3 to 7, namely Girdharilal, Jamnalal, Gopal lal, Om Prakash and Shyam Sunder, member of Joint Hindu Family Girdharilal -Jamnalal as insolvent. Application Under Section 28 was also moved. Schedule C was annexed with the petition showing the property belonging to and in possession of non -applicants Nos. 1 to 6 in the petition. 25 properties were shown in Schedule B which were alleged to be transferred during the period from 29.1.88 to 12.2.83 to the non -petitioners Nos. 7 to 25. The Additional District Judge by the impugned order granted the application for appointment of interim receiver directing, him to take possession of all the properties mentioned in Schedule B and Schedule C and without deciding whether the properties which had been transferred prior to the filling of the petition were transferred with intend to defeat the creditors and the transfers were not purchasers for value without notice.

(3.) THE appellants urges that they are transferees of some of the properties mentioned in Schedule B and Schedule C for value and they are bona fide purchasers for value without notice of any fraudulent intention on the part of the debtors transferors. Their names were not included in the list of transferees also and therefore, the order has been passed without notice to them.