RAMCHANDRA NARAYANJI & ANOTHER Vs. RAMESHWAR BHAGWANDAS
LAWS(MPH)-1949-11-3
HIGH COURT OF MADHYA PRADESH
Decided on November 17,1949

Ramchandra Narayanji And Another Appellant
VERSUS
Rameshwar Bhagwandas Respondents


Referred Judgements :-

GOVIND RAM V. KUNJ BEHARI LAL [REFERRED TO]



Cited Judgements :-

VISHNU DAS VS. KRISHNA KUMAR [LAWS(HYD)-1952-9-10] [REFERRED TO]


JUDGEMENT

Rege, J. - (1.)THE applts. presented an insolvency petn. against the reap. Rameshwar Bhagawandas on 23 -9 -1943, alleging that he had with intent to defraud his creditors departed from his house & usual place of business on 19 -7 -1943 & since then secluded himself so as to deprive the creditors of the means of communication with him & has intimated that he was suspending payment of his debts, that Rameshwar's brother Bulkhiram had on the same day removed books of accounts & other goods from the shop. The debts mentioned in the petn. consist of :
1. Due to petnr. Ramchandra :

Rs. 262 -2 -9 Balance of the price of silver bars Rs. 4432 -12 -0. Damages on accounts of breach of contract for forward purchase of silver bars.

Rs. 78 -10 -0 Interest according to the custom of the market.

(2.)DUE to Gokuldas :
Rs. 197 -3 -6, Damages on account of breach of contract for forward purchase of silver bars.

2. The case was set down for hearing on 22 -11 -43, but on 25 -9 -1943 Rameshwar appeared by a pleader Babu Ram Gopal & on 27 -9 -1943, presented an appln. (P. 3) denying his liability. Inter alia he contended that the transaction in forward contracts were against law & created no liability in view of Circular NO. 5 of 1970 (St.). The creditors petn. was dismissed by the learned Dist. J. Ujjain & the Creditors have come up in appeal.

It is conceded that the relevant provisions of the Gwalior Insolvency law are identical with those of the Indian Provincial Insolvency Act. The first question for determination on the admission of the petn. was whether the creditors were entitled to present the petn. that is whether on the creditors' allegation there was : (i) A debt owing by the debtor to the creditors amounting Rs. 500 & (ii) The debt, is a liquidated sum payable either immediately or at Some certain future time; & (iii) The act of insolvency has occurred within three months before the presentation of the petn.

(3.)UNFORTUNATELY the lower Ct. straightway proceeded to record evidence, a large mass of which is utterly irrelevant & there was deplorable laxity in the proceedings until the mattes was considered by the present learned Judge. The law of Insolvency is mainly designed for the protection of creditors & the relief of debtors. Govind Ram v. Kunj Behari Lal, 46 ALL. 398 : (A.I.R. 1924 ALL. 341 F.B.), the object being to distribute the debtor's property fairly & expeditiously among his creditors & to give the debtor a fresh start in life, unless he is found to have committed wilful fraud. The object of law is apt to be defeated by undue delay as in the present case & security of business transactions is likely to be affected.


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