S R M S T R M RAMASWAMI CHETTIAR THROUGH HIS AUTHORISED AGENT KUPPAN AYYANGAR Vs. TSRAMASWAMI AIYANGAR, OFFICIAL RECEIVER

JUDGEMENT

(1.) This appeal in effect raises the question whether a purchaser from the Official Receiver, of a property of the insolvent whom the receiver represents, can obtain an order from the Insolvency Court for delivery of possession of the property, where his application is resisted by a third party.

(2.) This appeal has been argued before us on the footing that the rights of the parties are governed by the provisions of the Provincial Insolvency Act, Act V of 1920. It is necessary to examine carefully the terms of Secs.4, 5 and 56 of this Act. By Section 56(3) it is provided that "where the Court appoints a receiver, it may remove the person, in whose possession or custody any such property as aforesaid is, from the possession or custody thereof. Provided that nothing in this section shall be deemed to authorize the Court to remove from the possession or custody of property any person whom the insolvent has not a present right so to remove.

(3.) This section clearly applies to the case of a receiver applying for the removal of an obstructer from the possession of the property claimed to be the property of the insolvent. It is also clear that, for the purpose of determining the right of the receiver as against the obstructer, to the possession of the property, the Court can hold an enquiry under this section.