KALI NATH CHAKRAVARTY Vs. AMBICA PRASHAD DAS

JUDGEMENT

(1.) This is an appeal against a decision of the Additional District Judge of Alipur in certain insolvency proceedings, by which he refused to annul two transfers of property. One Mani Lal Sahawas adjudicated an insolvent on a petition failed on the 18th February 1914 by one of his creditors. In the course of the proceedings the question of annulment of three mortgages came before the Court. These were 29 Ind. Cas. 128 : 21 C. L. J. 167 : 19 C. W. N. 157, in favour of one Ambica Prasad Bass for Rs. 10,000 dated 15th July 1913, 32 Ind. Cas. 313 : 43 C. 521 : 30 M. L. J. 116 : 3 L. W. 207 : 20 C. W. N. 393 : 14 A. L. J. 198 : (1916) 1 M. W. N. 198 : 19 M. L. T. 203 : 23 C. L. J. 406 : 18 Bom. L. R. 378 : 43 C. 521 (P. C.), in favour of one Chandi Charan Saha for Rs. 10,000 dated 14th November 1913 and 33 Ind. Cas. 548 : 43 C. 640 : 20 C. W. N. 420, in favour of one Pratap Chandra Ganguli for Rs. 16,000 dated 15th December 1913. The first two came up for consideration under Section 36 of the Provincial Insolveneey Act, the third under Sections 37 of the Act. The Judge declared the second mortgage void against the Receiver, but refused to annul the other two. The present appeal is by some of the creditors against the order refusing to annul the two mortgages.

(2.) The insolvent was originally a Medical Practi(sic)ioner but started a rice business and it is his dealings in this business which have landed him in financial difficulties. The immoveable properties shown in his schedule consisted of three separate properties, viz., Nos. 66, 67 and 68, Tollygunge Circular Road, the first two of which were each valued at Rs. 25,000, and the third at Rs. 3,600. His moveable properties consisted mainly of machinery and fittings for the rice business valued at Rs. 15,027 : there were also furniture and domestic articles valued at Rs. 500. His assets thus amounted to Rs. 69,127, while the liabilities exceeded Rs. 90,000.

(3.) The mortgage in favour of Ambica Prasad Das covered No. 67, Tollygunge Circular Road. The bond recites that a loan of Rs. 3,000 had been taken on the 30th June from Ambica, that amount with interest was deducted from the Rs. 10,000, and the balance Rs. 6,985 was stated to be paid in cash. Particulars of the notes by which the cash was paid were given in the schedule.