SIDICK HAJI HUSEIN Vs. OFFICIAL ASSIGNEE OF BOMBAY
HIGH COURT OF BOMBAY
SIDICK HAJI HUSEIN
OFFICIAL ASSIGNEE OF BOMBAY
Click here to view full judgement.
John Beaumont, Kt. , C. J. -
(1.) THIS is an appeal from an order made by Mr. Justice Kania in, Insolvency.
(2.) THE application is by notice of motion made in Insolvency No.169 of 1911 and asks for an order that the Official Assignee of Bombay do pay to the debtor two sums of Rs. 10,208-5-8 and Rs. 20,854-2-7 appertaining to the estate and transferred by the Official Assignee to the unclaimed dividend capital account on August 13, 1928.
The nature of the claim is that the insolvent's adjudication was annulled in the year 1928, that at that time there were certain sums in the insolvency standing to the credit of the unclaimed dividend capital account, that the effect of the order of annulment was that those sums reverted to the debtor, and that he is now entitled, to be paid.
The unclaimed dividend capital account arises under Rule 178 of the Presidency-towns Insolvency Rules, Bombay ; and under Section 121a of the Presidency-towns Insolvency Act, which was added by the Amending Act, Bombay Act XX of 1933, it is provided that the sums and securities standing to the credit of the unclaimed dividend capital account and certain other accounts with the High Court of Judicature, Bombay, are transferred to the local Government; and then it is provided that the revenues of the local Government shall be liable to make good all sums required to meet the claims upon the said sums and securities of persons entitled thereto.
(3.) THEN, under Section 123 of the Act, as amended, it is provided that any person claiming to be entitled to any monies paid to the account and credit of the local Government may apply to the Court for an order for payment to him of the same; and the Court, if satisfied that the person claiming is entitled, shall make an order for payment to him of the sum due.
Now, the facts giving rise to the application are these : An order of adjudication was made on May 3, 1911 ; and in 1913, 1916 and 1917 dividends were paid in the insolvency, which amounted together to less than two annas in the rupee. In 1923, a sum of Rs. 10,000 and odd, which is the first sum mentioned in the notice of motion, was transferred by the Official Assignee to the unclaimed dividend account. In 1925, a supplementary dividend was declared ; but, as the office of the Official Assignee had mislaid the addresses of creditors,-an episode which reflects little credit on the then management of the offices-, only eight creditors received their shares of the supplementary dividend, and there was a considerable surplus of unclaimed dividends, In 1926, a motion was made to the Court to annul the insolvency; and, in August, 1928, an order was made purporting to annul the insolvency as from November 6, 1928. I will refer to the terms of that order presently. On August 13, 1928, that is, before the annulment became effective the second sum referred to in the notice of motion 'namdy, Rs. 20,000 and odd. was transferred by the Official Assignee to the unclaimed dividend account. In April, 1934, the funds to the credit of the unclaimed dividend account were transferred to the local Government under the terms of the Act to which I have referred.;
Copyright © Regent Computronics Pvt.Ltd.