GUJJU ANNAPURNAMMA Vs. OFFICIAL ASSIGNEE, HIGH COURT

JUDGEMENT

(1.) The two insolvents are brothers and were adjudicated in February 1946. They are members of a family which carried on business on a large scale at Rajahmundry in the East Godavari district as timber dealers, money lenders etc. In the books of this family business amounts appear to have been deposited by close relatives of the insolvents. The earliest books available to the Official Assignee are those for the year 1917 and the latest those for the year 1929. I understand that the books for one or two years between 1917 and 1929 are missing The Official Assignee is satisfied that these deposits were made and that the entries in the books of account evidencing them are genuine. Accordingly he has accepted the entries of such deposits as sufficient evidence that moneys to that extent were deposited by the several depositor relatives on the dates and the amounts shown in the books of account. In some cases, the first books of account available those for 1917 show an amount carried forward from the previous year s. accounts. These entries the Official Assignee has disregarded, except in those cases where the depositor concered has been in a position to satisfy him by other evidence of the actual amount deposited and the date of deposit.

(2.) Subject to this last qualification the deposits evidenced by the accounts have been admitted by the Official Assignee for the amounts shown due by the books of the firm for the year 1929 with interest thereafter until the date of adjudication at the contract rate of 12 per cent. per annum. But, in so admitting these proofs, the Official Assignee has directed that, for the purposes of dividend, interest will be allowed at only 6 per cent. per annum on the amounts originally deposited from the date of deposit up to the date of adjudication. I understand that the books of account of the firm between 1917 and 1929 show that interest was calculated during that period at the rate of 12 per cent. per annum compound interest and the Official Assignee has allowed the proof with interest at that rate up to the date of adjudication after deducting the drawings. For payment of dividends, however, he claims that interest should be allowed throughout on these deposits at only 6 per cent. per annum.

(3.) Nine of the depositors have now appealed against his decision and one--the applicant in application No. 593 of 1947--complains in addition that the Official Assignee has unjustifiably disregarded the amount shown to his creditin the insolvent's accounts at the beginning of 1917. A credit in his favour is there shown as carried forward from the previous account and it is admitted that no earlier accounts were produced to the Official Assignee and indeed that no earlier accounts are now forthcoming. In these circumstances, I am not prepared to vary the Official Assignee's refusal to accept the proof for the amounts shown as carried forward. A second cause for complaint is, however, urged by this applicant. It is urged that deposits were made during the years for which the accounts are missing. The Official Assignee agrees that this may be so, inasmuch as there is a substantial amount shown as carried forward in the first year after the years for which the accounts are missing. Counsel for the applicant states that his client is now in a position to secure the production of the accounts for the missing years for inspection by the Official Assignee and asks that he may be given an opportunity to do this. The Official Assignee has no objection and, accordingly, application No. 593 of 1947 is on this point adjourned and the Official Assignee will have it put in the list again for orders when he has been able to examine the accounts for the missing years. I will now deal with that application and the other eight applications on the question common to all.