JAGANNATH Vs. BADRI PRASHAD

JUDGEMENT

(1.) This is a petition by one Jagan Nath for revision of the order of the learned District Judge, Delhi, dated 7 July 1948 which affirmed the order made on 16th December 1947 by the Insolvency Judge, Delhi, whereby the petitioner and one Piaray Lal were adjudged insolvents. The facts shortly are as follows:

(2.) On 8 August 1946 one Badri Prashad and one Manohar Lal claiming to be the creditors of the firm of Jagan Nath Ram Nath presented a petition in the Court of the Insolvency Judge, Delhi, for adjudicating Jagan Nath, Ram Nath (the minor son of Jagan Nath) and Piarey Lal as proprietors of the firm. Later on, some more creditors came in and were added as petitioning creditors and an amended petition was filed on 10 October 1946. It may also be mentioned here that at some subsequent stage the name of the infant Ram Nath was struck out from the record and the proceedings continued against Jagan Nath and Piarey Lal.

(3.) The acts of insolvency on which the petition was founded were set out in para. 8 of the petition an English translation of which made by rosy reader and accepted by learned Counsel for both parties appearing before me as correct is as follows: 3. The debtors have committed the following acts of insolvency within the last three months: (a) that the debtors have transferred to the Bullion Association, Delhi, a major portion of their outstandings for the benefit of the creditors. (b) that the debtors have made alienations of their properties with a view to defeating and delaying their creditors, although according to this Act and other Acts in force these transfers, being undue preference, are void in case they are declared insolvents. (c) with the intent to defeat and delay their creditors: (i) they have stopped their ordinary business, have left it and have concealed themselves; (ii) they have informed their creditors that they have stopped payment of the debts due from them.