SOHAN LAL Vs. SHEO NATH

JUDGEMENT

(1.) This is an appeal by three creditors of an insolvent Sheo Nath.

(2.) On 15 December 1926 appellants 1 and 2 applied that Sheo Nath be declared an insolvent. The total debt payable by Sheo Nath to these two appellants did not amount to Rs. 500. So on 28 January 1927 appellant 3 joined in the petition and it was upon this petition, which was taken into account by the learned District Judge, that he on 18 February 1927 adjudged Sheo Nath an insolvent. On 1st, March 1927 an application was presented by the appellants to the Court under Section 54 (1), Provincial Insolvency Act (5 of 1920) praying that transfers made within three months of 15 December 1926 be set aside. Objection was taken that the, section did not apply, because it was upon the application of Mathra Prasad dated 28 January 1927 that Sheo Nath was declared an insolvent and transfers in question were more than three months from that date. No question arises whether Mathra Prasad could or could not apply for Sheo Nath to be declared an insolvent but it was because the debt of all the three appellants amounted to over Rs. 500 that the application by that creditor was a competent application upon which the learned Judge could act.

(3.) In our opinion 28 January 1927 must be taken to be the date of the petition upon which the insolvent was adjudged as such. The transfers being more than three months before that date cannot be questioned under Section 54 (1).