OFFICIAL ASSIGNEE Vs. CMANICKAVELU MUDALIAR

JUDGEMENT

(1.) The Official Assignee took out this application for an order to direct the insolvent Manickavelu Mudali to pay to him from and out of the commutation sum received by him a sum of Rs. 5,700. The insolvent was the Head Clerk in the Office of the Post-Master General, Madras, on a salary of Rs. 220, per mensem. He retired from service from the 1 June, 1941 on a pension of Rs. 101-10-0. He commuted one half of his pension and received a consolidated sum of Rs. 7060-14-0 as commutation. He did not pay any portion of this com- mutation sum to the Official Assignee, nor did he appear before him for examination though called upon to do so. The Official Assignee had to obtain a warrant on the 11 September, 1941.

(2.) The insolvent told the Official Assignee that he had paid most of the amount received by him to his creditors and he handed over a sum of Rs.. 500 only to the Official Assignee. He then gave a list of persons to whom he made payments and of what amounts. The Official Assignee was not satisfied with the story and has come forward with this application. Dividends to the extent of 0-3-9 have been declared, but the Official Assignee is of opinion, and rightly if I may say so, that more could be realised from this insolvent for the benefit of the creditors.

(3.) It was contended on behalf of the insolvent by Mr. Varadaraja Mudaliar that the commutation amount received by his client would not vest in the Official Assignee as it partakes of the nature of pension. He also argued that the payments made by the insolvent could not be questioned by the Official Assignee as there was no intervention by him before the payments were made.