MAKHAN LAL GOVINDRAM Vs. BHAGWAN SINGH MISTRI CREDITORS

JUDGEMENT

(1.) The question in this appeal is with regard to two debts which are stated to have been proved in the insolvency proceedings against the petitioner who is the appellant in this Court.

(2.) The matter came before the learned Judge in the Court below on, an application to expunge the two debls to which I have made reference. The first question which was argued in the appeal was that the appeal was incompetent. Reliance was placed upon Section 50, Provincial Insolvency Act read together with Section 75. The contention of the respondents on this point is that the words "upon the application of a debtor" in Sub-section 2 of Section 50 refer only to the previous sentence, that is to say, to the case of a composition or scheme. A great deal of support is given to that argument by reference to English authorities on this matter. The English Rules 24, 25 and 26, Bankruptcy Act, have been enacted in Section 50, Provincial Insolvency Act.

(3.) In England the right of a creditor to apply to the Court for the expunging of proof exists only in the case where the trustee or the receiver (to use the expression adopted in India) declines to interfere or in the case of a composition or scheme. But the point does not strictly arise, as the District Judge, being in some doubt with regard to the merits of the application of the creditor, referred the matter to the receiver who made a report recommending that one at least of the debts should be expunged from the schedule.