- (1.) THIS is a revision application by a creditor against an appellate order of the District Judge, Balotra, setting aside an order of the Insolvency Court Jalore, abating an insolvency petition filed by Rama debtor, respondent.
(2.) DURING the pendency of the debtor's insolvency petition Sagarmal creditor filed an application under sec. 6 of the Rajasthan Relief of Agricultural Indebtedness Act, 1957. This petition was admitted by the Debt Relief Court. When intimation about the admission was received by the Insolvency Court it abated the insolvency proceedings. The above order has been set aside by the learned District Judge. I have heard the learned counsel for the applicant and have perused the provisions of the Rajasthan Relief of Agricultural Indebtedness Act 1957. The sections the provisions of which are to be considered in this connection are secs. 5, 6 and 21, the relevant portions of which run as follows: - "sec. 5 Abatement or stay of suit or insolvency petition.- Whenever a suit or an insolvency petition against a debtor shall have been brought or made and pending in a competent court and such debtor or the person who brought or made such suit or petition applies to such court in this behalf, the court shall - (i) abate such suit or petition if it is satisfied on affidavit or otherwise that an application to the Debt Relief Court under sec. 6 or sec. 6-A has been made and admitted and is pending, or (ii) stay proceedings in such suit or application if it is satisfied as aforesaid that the defendant or the opposite party, as the case may be, is a debtor within the meaning of this Act: Provided that, in the case of an application for stay under clause (ii), the court shall fix a period, not exceeding ninety days, within which the application to the Debt Relief Court shall be made. "sec. 6 Application to Debt Relief Court.- (1) Any debtor, who is liable for debts individually or jointly with another person, may file an application before the Debt Relief Court having jurisdiction in the area in which he ordinarily resides or earns his livelihood praying for the determination of his debts. (2) Such an application, praying for the determination of the debts outstanding against a debtor, may also be filed by his creditor or his surety, whether such debtor is liable for such debts individually or jointly with another person (6) The audit or insolvency petition in which proceeding may have been stayed under clause (ii) of sub-sec. (i) of sec. 5 shall abate - (i) if no such application as is referred to in sub-sec. (4) is filed, or (ii) if such an application is admitted and notice of such admission has been received by the court concerned. "sec, 21. Bar against jurisdiction of courts in certain matters - (1) Subject to the provisions of sec. 17 to 19, the jurisdiction of the civil courts and the insolvency courts shall be barred in respect of: (a) any matter pending before a Debt Relief Court; Sec. 29 of the Provincial Insolvency Act provides that any court in which a suit or other proceeding is pending against a debtor shall, on proof that an order of adjudication has been made against him, either staty the proceedings, or allow it to continue on such terms as such court may impose. Sec. 5 of the Rajasthan Relief of Agricultural Indebtedness Act on the other hand expressly provides for the abatement of even insolvency proceedings, on the making of an application under that Act. This means that in the opinion of the Legislature the Debt Relief Act provides greater relief to the debtor than is provided by the Insolvency Act. This has to be borne in mind in interpreting the provisions of the Debt Relief Act. So far as sec. 5 is concerned it is no doubt mentioned in it that whenever any insolvency petition against a debtor shall have been brought and such debtor applies to the Debt Relief Court then the insolvency proceedings shall abate. It does not expressly provide for the abatement of any insolvency proceedings when the creditor files an application to the Debt Relief Court. But sec. 6 (2) lays down that an application for the determination of debts outstanding against a debtor may also be filed by his creditor, and as soon as such an application is filed the jurisdiction of the Insolvency Court is barred under sec. 21. It appears that the intention of the Legislature is that even when the creditor files an application to the Debt Relief Court and that application is admitted then a suit or insolvency petition shall be abated. It stands to reason that the consequence of an application made by the creditor under the Act should be the same as those of an application made by the debtor. I am therefore of the view that even where a creditor makes an application to the Debt Relief Court the consequences mentioned in sec. 5 will follow. I accordingly allow the revision application, set aside the order of the District Judge and restore that of the Insolvency Court. The applicant shall bear his own costs as the respondents have not appeared to oppose the revision application. . ;