SASTI KINKAR BANERJEE Vs. HURSOOKDAS CHOGEMULL

JUDGEMENT

(1.) In this case the only real question is whether the High Court had jurisdiction to make the order that was made at Calcutta, adjudicating the appellant insolvent. The history of the case is that on August 6, 1924, the appellant was adjudicated insolvent by the Court of the District Judge of Birbhum. Then on September 15, the respondent firm filed a petition in the High Court of Calcutta on the Original Side in Insolvency Jurisdiction, making a claim to money, and that was supported by an affidavit. Some controversy was at first raised by the appellant on this matter, and it was alleged that the High Court had no jurisdiction. On March 17, 1925, the High Court in its Insolvency Jurisdiction treated itself as having jurisdiction and made an order adjudicating the appellant insolvent. Then there was an appeal to the High Court and the High Court agreed with the learned Judge, who decided for insolvency, and held that he was acting under his jurisdiction in accepting, upon the petition which was verified by affidavit, that the acts of insolvency against the debtor had been established and that the Court was not hampered by the proceedings in the other Court. Then leave to appeal was given and the appellant comes here.

(2.) What the appellant says is this. He does not dispute the jurisdiction which arises under the Insolvency (Presidency Towns) Act, 1909, but he says that, having regard to Section 22 of that Act, it was wrong to make the order that was made at Calcutta. Section 22 is in these terms : Where it is proved to the satisfaction of the Court that insolvency proceedings are pending in any other British Court within or without British India against the same debtor and that the property of the debtor can be more conveniently distributed by such other Court, the Court may annul the adjudication or may stay all proceedings thereon.

(3.) Their Lordships think that makes it quite clear that the High Court in Calcutta had power to stop these proceedings and to say it is more convenient that matters should go on at Birbhum; but there seems to have been some suspicion that the proceedings at Birbhum were not proceedings which were in the best interest of the creditors and that it was better that the jurisdiction should be exercised by the High Court, and accordingly the High Court Judge exercised his jurisdiction, and, on appeal to the Court of Appeal, the view taken by Mr. Justice Buckland in so deciding the case was affirmed.