Bidhata Din and Another vs Jagannath and Others

This is a petition in insolvency by a debtor. The Court below, after taking the evidence adduced in support of the petition, rejected it, on the ground that it was not satisfied that the applicant was unable to pay his debts. In appeal it is contended that this was not sufficient to reject the application of the debtor. In our opinion, the point taken by the learned Vakil for the appellant is sound. The Court was not entitled to reject the application of the debtor simply on the ground that he could not satisfy the learned Judge that he was unable to pay his debts and that he had concealed some of his properties. A Bench of this Court in Girwardhari v. Jainarain 7 A.L.J. 835 : 7 Ind. Cas. 39 : 32 A. 645 has decided that that is not sufficient to reject the application of a debtor to be declared an insolvent. The same view was taken in Udai chand Maiti v. Ram Kumar Khara 15 C.W.N. 213 : 12 C.L.J. 4C0 : 7 Ind. Cas. S94 and in Kali Kumar Das v. Gopi Krishna Roy 15 C.W.N. 990 : 12 Ind. Cas. 48. We, therefore, set aside the order of the learned District Judge and send back the case to him to proceed in accordance with law.