High CourtsDivision Bench

G. Mudappa and Others vs S. Parameswara Bhat and Others

Madras High Court · Decided on 22 August 1924 · Citation: AIR 1925 Mad 242 : (1924) 20 LW 880

HON’BLE JUDGES
Venkatasubba Rao, J
ACTS & SECTIONS REFERRED
Provincial Insolvency Act, 1920 — Section 24
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Judgment

12 paragraphs · 295 words

Venkatasubba Rao, J.—The appellants before us were adjudicated insolvents, by an order of the District Judge, dated the 14th March,

1924. The petition in insolvency was filed on the 13th November, 1922, by a creditor to whom about Rs. 20,000 was due by the insolvents.

Various adjournments were obtained on the ground that the debtors were settling with their creditors. One of these orders of adjournments was

made on the 4th February, 1924. It is specifically mentioned in it that "" no further adjournment will be granted, beyond the 25th February, to which

date this (that is the petition), is finally adjourned."" It is clear that the procedure prescribed by Section 24 of the Provincial Insolvency Act was

followed and the learned Judge gives a finding that the insolvents committed an act of insolvency. As regards this there can be no doubt, because

Exhibit A, which is a notice issued by the debtors, previous to the filing of the petition contains a statement, that the debtors were unable to pay

their debts. It would, however, appear that the petitioning creditor, having settled his claim with the insolvents, applied to the Court for permission

to withdraw his petition. u/s 14 of the Provincial Insolvency Act, no petition shall be withdrawn without the leave of the Court. The Court refused

leave and passed the order of adjudication. There is nothing irregular in this and we see no ground for setting aside the order. Some minor grounds

have been feebly urged, by the learned Vakil for the insolvents ; but we find they have not been taken in the Memorandum of Appeal and we do

not think it necessary to discuss them. The appeal is dismissed with costs of the respondents, which will come out of the estate.