RM AL RM ALAGAPPA CHETTIAR Vs. KANNAPPA CHETTIAR

JUDGEMENT

(1.) The plaintiffs suit for a declaration of their title to a house has been decreed. The two defendants appeal.

(2.) The relevant facts may be briefly stated as follows:--In I.P. No. 2 of 1927 on the file of the Rangoon High Court, a firm of Nattukottai Chettiars, of which the father of each defendant was a partner, was adjudicated insolvent. On 17 January, 1928, what is described as a composition scheme was approved by the Court in an order which has been exhibited as D. The terms were as follows:--The Official Assignee was to be paid his expenses and his commission; the creditors agreed to receive and were guaranteed payment of five annas in the rupee by two Chettiar firms, who were described as sureties but who were in reality purchasers of the entire assets of the insolvent firm, In pursuance of this scheme the purchasers of the assets paid Rs. 52,173-9-9 privately to certain creditors and Rs. 55,450 to the Official Assignee for distribution to the remaining creditors. These payments amounted to paying five annas in the rupee of the insolvent firm's liabilities. Thereupon by a deed of indenture dated 22nd February, 1928 (Ex. E), the Official Assignee transferred all the assets of the insolvents described in their schedule with all the right, title and interest of the said insolvents therein to the sureties (or rather purchasers).

(3.) On 28 September, 1929, the purchasers sold the suit house to the plaintiff (Meyappa Chetti) for Rs. 75,000.