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1968 DIGILAW 5 (ORI)

SRIMATI SARI SABATANI v. KANDHUNI SAHUANI

1968-01-10

BARMAN

body1968
JUDGMENT : Barman, C.J. - This appeal arises out of an insolvency proceeding. The creditors are Appellants herein against an order of the District Judge in appeal allowing the petition of the claimant u/s 4 of the Provincial Insolvency Act as filed within time. The claimant is the mother of the insolvents Respondents 2 and 3 in the appeal claiming one-third share in the properties of the insolvent which are stated to have vested in the Receiver, and the properties in question are said to have already been put on auction. The defence of the creditors is that the said application of the claimant u/s 4 is barred by time by virtue of the provisions of Section 68 of the Act. On September 19, 1963 the trial Court held that the application was maintainable as there was no period of limitation for application u/s 4. In appeal the learned lower appellate Court by his judgment dated March 16, 1964 confirmed the decision of the trial Court relying on a decision of the Andhra Pradesh High Court reported in D. Heerabai and Another Vs. Official Receiver, Krishna and Another. Neither the trial Court nor the lower appellate Court decided the matter on merits. 2. The only point urged in this appeal is the question of limitation. It appears that since the trial Court and the lower appellate Court had decided the point of limitation, the Supreme Court gave a decision 011 the point by their judgment reported in Hans Raj v. Ruttan Chand and Ors. AIR 1967 S.C. 1780 . The Supreme Court decision was not available to either of the two Courts at the time they decided the case before them. 3. In this view of the position it is only fair that this case should be sent back on remand to the trial Court for decision of the entire case on merits including the point of limitation and disposal thereof-all according to law; the trial Court is directed to expedite disposal of the matter as early as possible. 4. In the result, therefore, this appeal is allowed with the direction that the case be sent back on remand to the trial Court for decision and disposal according to law. Costs of this appeal will abide the result of the claim case. Final Result : Allowed