RAKHAL CHANDRA PURKAIT Vs. SUDHINDRA NATH BOSE

JUDGEMENT

(1.) This appeal is against an order of the District Judge of the 24 Perganahs under Section 36 of the Provincial Insolvency Act, by which he held that the alleged transfer of certain property made by an insolvent in favour of the appellant was void as against the Receiver.

(2.) The insolvent Braja Nath executed a deed of sale in favour of the appellant Rakhal on the 9th July 1913. Braja Nath applied to be declared insolvent on the 7th May 1915 and the order of adjudication was made on the 25th July 1915. The Receiver in insolvency applied to the District Judge on the 11th April, 1916, for avoiding the transfer. The learned District Judge held that the transfer was void having been made within two years before the date of the presentation of the petition for insolvency, and upon the evidence he found that the transfer was without consideration and did not pass any title to the appellant.

(3.) Now, Section 36 of the Provincial Insolvency Act lays down that any transfer of property not being a transfer made before and in consideration of marriage or made in favour of a purchaser or encumbrancer in good faith and for valuable consideration shall, if the transferor is adjudged insolvent within two years after the date of the transfer, be void against the Receiver and may be annulled by the Court.