RAM MURTI LAL AND ANOTHER Vs. JAGANNATH PRASAD AND OTHERS
LAWS(ALL)-1976-4-53
HIGH COURT OF ALLAHABAD
Decided on April 07,1976

Ram Murti Lal Appellant
VERSUS
JAGANNATH PRASAD Respondents

JUDGEMENT

SATISH CHANDRA,J. - (1.) CHANDRA Sen was adjudged insolvent on April 29, 1960. His properties were sold in two lots on August 16, 1967. The sale was confirmed on July 23, 1968. The debtor-insolvent was discharged on January 23, 1970. sorne of the creditors applied for the setting aside of the sale by an application dated July, 3 1970. The learned insolvency Judge dismissed the application on the find­ings that it was barred by limitation and also because it was not main­tainable as the insolvent had been discharged.
(2.) THE creditors went up in appeal. The lower appellate court held that the mere discharge of the insolvent was not sufficient to throw out the creditors' application challenging the sale. It further held that the application of the creditors was maintainable under Section 4(1) of the Provincial Insolvency Act even though the pres­cribed period of limitation for making an application under Section 68 of the Act had expired. On this view he allowed the appeal and sent the case back to the Insolvency Judge for disposal in accordance with law. He directed the Insolvency Judge to decide the question of limitation for an application under Section 4 of the Act. Aggriev­ed, the auction-purchasers have come up to this Court. Section 68 of the Act provides for an appeal to Court against any act or decision of the Receiver. Such an appeal can be tiled by the insolvent or any of the creditors or any other person aggrieved. The proviso says 'that no application under this section shall be enter­tained after the expiration of twenty-days from the date of the act or decision complained of.' In the present case the act complained of was the sale and its confirmation by the Receiver. These acts could well be challenged by the respondents, who are creditors, under Sec­tion 68 of the Act. They did not do so. The right to appeal to Court under Section 68 of the Act became barred.
(3.) SECTION 4 of the Insolvency Act occurs in part of the Act which is entitled as 'Constitution and Powers of Courts'. Section 3 confines insolvency jurisdiction on district courts. Section 4 is entitled as 'Power ox Court to decide all questions arising in insolvency'. Sec­tion 5 gives a general power to Courts in regard to the proceed­ings under the Act. Section 4(1) says:- “4(1) Subject to the provisions of this Act, the Court shall have full powers to decide all questions whether of title or prio­rity, or of any nature whatsoever, and whether involving mat­ters of law or of fact which may arise in any case of involvency coming within the cognizance of the Court, or which the Court may deem it expedient or necessary to decide for the purpose of doing complete justice or making a complete distribution of pro­perty in any such case." (Emphasis applied) ;


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