K. R. K. K. Krishnappa Chettiar v. V. VR. Kasiviswanathan Chettiar
1965-09-03
M.NATESAN
body1965
DigiLaw.ai
Order: - This is a revision under section 75 of the Provincial Insolvency Act by a debtor whose application to be adjudged as insolvent was dismissed by the learned Subordinate Judge of Sivaganga and was confirmed in appeal by the District Judge of Ramanathapuram at Madurai. Both the Courts were of the view that the present proceeding initiated by the debtor was an abuse of process of Court. Earlier the debtor had relied upon a particular debt as the basis of his personal indebtedness and initiated LP. No. 10 of 1959 seeking adjudication. The debt was found to be a fictitious one and he failed in those proceedings. Sub-sequenty and pending those proceedings the creditor in respect of that very debt obtained a decree against the petitioner herein and applied for and got him arrested. It is in those circumstances that the petitioner came up with another application for adjudication. The Courts below have failed to appreciate one aspect of the matter. For adjudicating a debtor an insolvent, the Court must see whether there is compliance with the provisions of section 10 of the Provincial Insolvency Act and whether the debtor has committed an act of insolvency. A debtor commits an act of insolvency even if the petitions to be adjudged an insolvent under the provisions of the Act. Under section 10 his debts must amount to Rs. 500 or he must be under arrest or imprisonment in execution of the decree of any Court for the payment of money. The decree debt in question exceeds Rs. 500 and that apart he was even arrested in execution. The fact that the petitioner is seeking to get round the original dismissal of his application is neither here nor there in the face of the mandatory provisions of the Act. As pointed out by the Privy Counsel in Chhatrapat Singh Durgar v. Kharag Singh Lachmiram1, when all the conditions specified under the Provincial Insolvency Act are satisfied, a debtor is entitled to an order of adjudication. The matter does not depend on the discretion of the Court, but it is a statutory right of which he cannot be deprived by the Court on the ground of abuse of process. There is a stage at which the Court could visit on the petitioner the due consequences of misconduct, that is when the application for discharge comes before the Court.
There is a stage at which the Court could visit on the petitioner the due consequences of misconduct, that is when the application for discharge comes before the Court. At the time of the initiation of the proceedings, the Court has only to be satisfied that the essential conditions for adjudication as provided under the Act are present. In this case the decree debt exceeds Rs. 500 and the debtor has applied for being adjudicated. That will be sufficient, leave alone the further fact that he had been arrested also in execution of the decree. In the circumstances, the revision petition has to be allowed. The petitioner is entitled to be adjudicated. The matter will go back to the Subordinate Judge at Sivaganaga for further orders on adjudication in the light of the observations made herein. The revision is allowed accordingly. No order as to costs. R. M. ----- Revision allowed; adjudication ordered.