NAGINDAS DAHYABHAI Vs. GORDHANDAS DAHYABHAI

JUDGEMENT

(1.) This is an application under Section 75 of the Provincial Insolvency Act V of 1920. One Thakor Girdhar had filed a petition to be adjudicated insolvent on July 17, 1922. The order of adjudication was made on November 11, 1922. An application was made to the Subordinate Judge on which notice was issued to Nagmdas Dayabhai to show cause why the transfer dated November 2, 1920, by the insolvent in his favour should not be annulled under Section 53 of the Provincial Insolvency Act V of 1920. The following issues were raised: 1. Whether the transfer to the opponent dated November 2, 1920, is or is not in good faith and for valuable consideration?

(2.) Whether the application is barred by limitation?

(3.) Whether the present applicant can apply under Section 53 of the Insolvency Act? 2. The Judge found that the; transfer was not in good faith or for valuable consideration; that the application was not barred by limitation; and that the present applicant could apply under Section 53 of the Act. 3. That section runs as follows: Any transfer of property not being a transfer made before and in consideration of marriage or made in favour of a purchaser or incumbrancer in good faith and for valuable consideration shall, if the transferor is adjudged insolvent within two years after the date of the transfer, be voidable as against the Receiver and may be annulled by the Court.