P LAKSHMI NARASAYYA Vs. SPNARASIMHACHARI

JUDGEMENT

(1.) The accused, who has been adjudged an insolvent, is charged by one of the creditors with having committed an offence under Section 103 of Act III of 1909, Presidency Towns Insolvency Act The complaint is filed before the Presidency Magistrate, who refers to us for decision the question whether he is entitled to try the accused for this offence.

(2.) Under Section 104 of the Act, when the Insolvency Court is satisfied that there is ground to believe that the insolvent has been guilty of any offence under Section 103, notice may be issued to him to show cause why a charge or charges should not be framed against him, the Court may after hearing him, frame such charges as it thinks fit, and may proceed to try him and convict him if the offence is proved. The ordinary procedure for the trial of offences is made inapplicable by the same section to such trials. There is thus no doubt that proceedings against the insolvent are set in motion only if the Insolvency Court is satisfied that there is ground to believe that the accused is guilty of any offence under Section 103. This shows that it is not open to any creditor to initiate proceedings by a complaint before another Court. The offence is created by the Act, and the Insolvency Court is constituted into a special tribunal to try that offence and the procedure also is different.

(3.) For these reasons we agree with the Presidency Magistrate that he has no jurisdiction to try the accused for an offence under Section 103 of the Act. He will be informed accordingly.