Gadigi Mudappa and Others vs Seernali Parameswara Bhat and Others

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 adjournment was made on the 4th of 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 gave a

finding that the insolvents committed an act of insolvency. As regards this, there can be no doubt, because Ex. 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Provincial Insolvency Act no petition shall be withdrawn without the leave of the Court.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 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.