H M EBRAHIM SAIT Vs. METTUPALAYAM NARAYANI BANK, LIMITED, BY ITS DIRECTOR IN CHARGE VPALANIAPPA CHETTIAR

JUDGEMENT

(1.) This is an appeal against an order passed by Mockett, J., adjudicating the appellant an insolvent. It is said that the person who filed the application for adjudication had no authority in law to do so and that there was no act of insolvency. Both these questions were raised before the learned Judge who has dealt with them fully in his judgment and we agree with his conclusions.

(2.) The petitioning creditor was the Mettupalayam Narayani Bank, Limited, which had obtained a decree against the appellant in the Court of the Subordinate Judge of Coimbatore for a sum of some Rs. 56,000. The decree was transferred to Madras for execution and execution proceedings were duly instituted. Chi the 4th March, 1939, the Bank attached the appellant's residence. The attachment continued until the 30 March, 1939, when the petition for adjudication was filed. The application was signed by V. Palaniappa Chettiar, who was the Director in charge of the Bank and also held the office of Secretary. On the 20 October, 1937, the Board of Directors passed this resolution: M.R. Ry. The Director, V. Palaniappa Chettiar Avergal shall take charge on 28 November, 1937, as Director-in-charge, Secretary and attend to the duties. It has been decided that, till appointment of another Secretary, the said V. Palaniappa Chettiar Avergal himself shall attend to all the affairs and Court proceedings relating to the Nidhi.

(3.) This resolution remained in force at the time of the filing of the insolvency petition in this case. The first contention of the appellant is that this resolution gave Palaniappa Chettiar no authority to act in insolvency on behalf of the Bank.