M.A.R.R.M.P. Muthu Veerappa Chettiar vs U.K. Sivagurunatha Pillai

This is an appeal against the order of the District Judge of Coimbatore dismissing the appellant''s application to adjudicate the respondent an

insolvent. The learned Judge dismissed the application on the ground that the respondent should not be adjudicated in respect of his father''s debt,

as there was no personal liability on the part of the respondent in respect of such debt. The petitioner in this petition alleged that the respondent

was pressed to pay the debt due to him and he requested the petitioner to give him time to collect the out standings and pay him. Taking advantage

of the time given to him, he made certain alienations in favour of certain creditors which the petitioner alleges to be fraudulent preferences. There is

nothing in the Insolvency Act which prevents the undivided members of a joint Hindu family from being adjudicated insolvents in respect of debts

due by the family. Each case would depend upon its circumstances. If the petitioner makes the necessary allegations and proves them, then the

Court would be justified in adjudging the members of a joint family insolvents. In the case of a joint Hindu family, if the father incurs debts, and

dies, the other members of the family do not stand in the relation of heirs; they only succeed to him and the debts are binding upon them. It was laid

down by a Bench of this Court in V.S. Rm. Chokalingam Chettiar v. Tiruvenkatasami C.M.A. No. 47 of 1916 that the relation of creditor and

debtor existed between the lender and the members of a joint family in respect of debts incurred by the family. That being so, there was no reason

why the lower Court should not have enquired into the matter and disposed of the petition on the merits. We, therefore, set aside the order and

direct the District Judge to restore the petition to file and dispose of it according to the provisions Section 24 of the Provincial Insolvency Act.

Costs will abide the result.