RAMATHAI ANNI Vs. KKANNIAPPA MUDALIAR

JUDGEMENT

(1.) This appeal arises out of an application of a creditor to adjudge a person an insolvent. The facts are one Vedamurthi Mudaliar, a well-to-do landowner of Melasevval in the Tinnevelly District, was the Karaswan of two chits to which the 1 respondent was a subscriber. He drew the prizes but was not paid the prize amount excepting a small portion. Vedamurthi Mudaliar became heavily involved in debt and became unable to pay the amount due to the 1st respondent and on 24 January, 1922, he filed an application under the Provincial Insolvency Act for adjudging Vedamurthi Mudaliar an insolvent alleging various acts of fraudulent preferences and fraudulent alienations, particularly one in favour of a relation, Muthu Kamakshiappa Mudaliar, for Rs. 48,000. Vedamurthi Mudaliar contested the petition on various grounds, the main ones being that the 1 respondent was not a creditor and that nothing was due to him in respect of the chit transaction, that he had not committed any act of bankruptcy, that the alienation in favour of Muthu Kamakshiappa Mudaliar was bona fide and for valuable consideration, that he was not in insolvent circumstances, and that he was able to pay his debts. He died in August, 1924, before his adjudication. The 1 respondent applied to the Sub-Court of Tinnevelly to bring on record the widow of Vedamurthi Mudaliar as his legal representative and hear his petition on the merits. The Subordinate Judge overruling the objection of the widow made her a party to the petition and adjudicated Vedamurthi Mudaliar an insolvent. On appeal the District Judge of Tinnevelly confirmed the order of the Subordinate Judge. The widow has preferred this appeal.

(2.) Mr. K.V. Krishnaswami Aiyar who appears for the appellant, raises three contentions against the order of the District Judge: (1) If a person against whom a petition for adjudication as an insolvent is presented dies before the passing of the order of adjudication, no adjudication order can be passed against him or his estate; (2) There was no good petitioning creditor's debt on which an application for adjudication could be founded; and (3) Vedamurthi Mudaliar did not commit an act of bankruptcy, or, in other words, there was no available act of bankruptcy which could be the foundation of a petition for adjudication.

(3.) Point No. 1. - The argument of Mr. Krishnaswami Aiyar is that a person in order to be adjudged an insolvent must be alive and that there is no provision in the Provincial Insolvency Act for passing an adjudication order against the estate of a deceased person, and he relies upon the wording of Section 7 as supporting his contention. The last clause of the first paragraph of Section 7 is and the Court may on such petition make an order (hereinafter called an order of adjudication) adjudging him an insolvent.