BEHARI LAL SIKDAR Vs. HARSUK DASS CHHAKINAL

JUDGEMENT

(1.) This appeal is directed against an order made by the District. Judge of the 24 Pargunnas in the exercise of his insolvency jurisdiction.

(2.) It, appears that on the 13th of Marsh 1919, on the petition of certain creditors, the four appellants (tarrying on business in co-partnership were adjudicated insolvents. On appeal to this Court the order of the District Judge was affirmed on the 25th July of the same year. Meanwhile the Receiver appointed under the provisions-of Section 18 of the Acts had taken steps to ascertain and realise the property of the insolvents. Certain sales effected by him notwithstanding the objections of the insolvents were confirmed by the Court on the 22nd September 1918.

(3.) Then followed on the 30th of January 1920 a petition by the insolvents submitting a proposal for a composition. To this proposal they appended a list, showing the names of 27 creditors (one apparently being mentioned twice over) and the sums (excluding interest) due to each aggregating Rs. 1,93,5C0. The proposal was that relative of the insolvents, one Madan Mohun Saha, on taking a mortgage by conditional sale of all the insolvents properties, should pay to the creditors eight annas in the rupee in full satisfaction of their claims. It was stated that the majority of the creditors had agreed to the proposal. On the 1st of March a meeting of creditors to consider the proposal was held. At this meeting were present the four insolvents, their relative, Madan Mohun Saha (by Pleader), the Receiver, five only of the 27 creditors named in the petition, and a Pleader for Messrs, Morgan & Co. who had proved their claim against the insolvents to the satisfaction of the Receiver. The Receiver who bad submitted two reports, dated 9th February and 1st March, and the above six creditors opposed the scheme, and by his order of the 6th March the Judge refused to approve of the same. No appeal bas been preferred against that order.