GANPAT RAI Vs. FIRM KANI RAM MUNNA LAL

JUDGEMENT

(1.) This petition in revision is on behalf of the defendant and raises a question of law on which, so far as this country is concerned, there does not appear to be any authority.

(2.) It appears that the defendant-applicant was adjudicated an insolvent by the Calcutta High Court on 22nd of June 1921. He presented a scheme of composition which was ultimately accepted by the High Court and the adjudication was annulled on the 27 September 1923. The respondents had a money claim as against the petitioner on the allegation that the latter obtained goods from them from time to time between the 15 July 1916 and the 19 June 1921, that he paid a portion of the price, and a small balance was still due with interest. On the completion of the insolvency proceedings, by a suit instituted on the 3 July 1924, the respondents claimed a sum of Rs. 109 odd alleged to be due to them, in the Court of Small Causes at Cawnpore. The defendant denied the claim and pleaded, inter alia, that the insolvency proceedings barred the suit. The learned Judge held that the defendant was liable and he further held that the proceedings in insolvency were no bar to the maintenance of the suit.

(3.) The question that has been argued before me is whether the insolvency proceedings were a bar or not. The learned Judge thought that as the adjudication had been annulled the right of suit revived. This is a view which, however, has not been supported.