MADHU SUDAN PAL Vs. PARBATI SUNDARI DASYA

JUDGEMENT

(1.) This appeal arises out of orders in an insolvency proceeding, the name of the insolvent being Sanatan Pal. The permission of this Court has been obtained under Section 46 of the Provincial Insolvency Act to prefer this appeal after permission had been refused by the District Judge.

(2.) One Nanda Kumar Saha obtained a decree against the insolvent on the 24th May 1911.

(3.) He took out execution proceedings and some property of the insolvent was sold on the 17th February 1913 to the purchasers Kali Krishna Pal and Amar Chand Pal. Kali Krishna sold the property which he had purchased to the appellant Madhu Sudan, who must not be confused with another Madhu Sudan Pal who is one of the respondents in this appeal. The date of the conveyance to the appellant was 28th February 1913. In the meantime, Sanatan Pal on the 7th October 1912 applied to be declared an insolvent and the order of adjudication was passed on the 7th February 1913. The proceeds of the execution sale were rateably distributed amongst three persons who had decrees against the insolvent. As the sale took place after the order of adjudication, these decree-holders were ordered to refund the money that they had received towards the satisfaction of their decrees. It was objected that the sale was invalid because it had taken place after the order of adjudication and on this objection, the District Judge referred the matter to the Receiver for report on the 21st February 1914.