CENTRAL BANK OF INDIA LTD Vs. KALUVA CHENCHAIAH
LAWS(APH)-1963-8-29
HIGH COURT OF ANDHRA PRADESH
Decided on August 17,1963

CENTRAL BANK OF INDIA LTD Appellant
VERSUS
KALUVA CHENCHAIAH Respondents

JUDGEMENT

- (1.) This Revision Petition is directed against the Order of the learned Additional District Judge of Anantapur in C.M.A. No. 7 of 1959 on his file. That appeal was preferred against the order of the Official Receiver, Anantapur, in I.A. No. 189 of 1958 in I.P. No. 20 of 1952 dated 21st November, 1958.
(2.) The facts leading to the Civil Revisional ptend follows : Kaluva Chenchaiah, the respondent herein, who will here the referred to as ' the creditor' used to purchase groundnut and store them In the godown of Rustomji & Sons for the purpose of decortication. In 1951 the creditor deposited 5,000 maunds of groundnut with Rustomji & Sons, hereinafter referred to as the ' insolvents' firm,' which executed a letter dated 15th January, 1952. Having learnt that the Central Bank of India, hereinafter referred to as ' the Bank' was bringing to sale 7,527 maunds of groundnut as pledgees thereof, the creditor issued a telegraphic notice on 23rd October, 1952, claiming that he was entitled to the groundnut and any sale by the Bank is illegal. The Bank by its reply dated 24th October, 1952, alleged that it was a bona fide pledgee from the insolvents' firm. The groundnut was actually sold on 27th October, 1952, and a third party, Messrs. Lakshmayya & Sons purchased the same at Rs. 6-1-0 per maund. The creditor's case is that, in fact the groundnut was worth Rs. 7-1-0 per maund and at that rate his 5,000 maunds are of the value of Rs. 35,312-8-0 and that amount was due to him. The respondent thereupon filed O.S. No. 76 of 1952, Sub-Court, Anantapur, on 30th October, 1952, for recovery of Rs. 41,875-8-0, being the said amount of Rs. 35,312-8-0 with interest.
(3.) After the institution of that suit, another creditor of the insolvent firm filed I.P. No. 20 of 1952 for adjudging the firm of Rustomji & Sons as insolvents and it was dismissed by the Subordinate Judge, Anantapur, in 1954. O.S. No. 76 of 1952 was dismissed on 23rd September, 1955, by the Sub-Court, Anantapur, for default. Thereupon, the creditor filed I.A. No. 362 of 1955 for restoration of the suit. Against the order dismissing the insolvency petition, the creditor filed C.M.A. No. 35 of 1954. Even during the pendency of I A. No. 362 of 1955, C.M.A. No. 35 of 1954 was allowed by the District Court, and the firm was adjudicated insolvent on 20th December, 1955. By reason of that order, the Official Receiver was brought on record in I.A. No. 362 of 1955 in the place of the insolvents' firm. Against the order of adjudication, the insolvents' firm preferred C.R.P. No. 27 of 1956 to this Court, and the same was dismissed on 19th March, 1957. LA. No. 362 of 1955 for restoration of the suit was dismissed on 19th October, 1957. An appeal against that order, C.M.A. No. 201 of 1958, was also dismissed by this Court on 25th January, 1960.;


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