JUDGEMENT
JAGAT NARAYAN, J. -
(1.) THIS is an appeal by the creditors against an order of the Insolvency Judge.
(2.) ON 8. 10. 58 Kanhaiya Lal filed an application for adjudication. ON this application a receiver was appointed who took possession over Khasra plots Nos. 171 to 173 situated in village Panotia, Tehsil Amet, District Udaipur on 21. 6. 59 treating them as the property of the insolvent. ON 4. 9. 59 respondents Nos. 2 to 5 filed an objection under section 4 of the Provincial Insolvency Act claiming the above property to be their own on the allegation that they had purchased it from the father of the insolvent under a registered sale-deed dated 29. 4. 59/. 1. 5. 59. This objection was resisted by the receiver and some of the creditors on the ground that the sale-deed was fictitious and was executed to defraud the creditors.
The Insolvency Judge framad two points for determination and recorded the evidence of the parties He however allowed the objection on the ground that no receiver could be appointed over the above property on account of the provision of section 37 of the Rajasthan Tenancy Act 1955 which runs as follows: - "sec. 37 - Bar to seizure, attachment and sale by process of Court.- -The rights of a tenant in a holding shall not be liable to seizure attachment or sale by process of any civil court. "
I have heard the learned counsel for the parties and am satisfied that the decision of the learned Insolvency Judge is erroneous. It is true that the tenancy rights of a tenant cannot be attached or sold. But agricultural produce of other profits from tenancy land is not exempt from attachment and sale either under the Tenancy Act or under the Civil Procedure Code or under any other law. A receiver can therefore be appointed to recover the agricultural produce or income from rent from the agricultural land of which the insolvent is a tenant. Such income or usufruct vests in the receiver under sec. 28 (5) of the Provincial Insolvency Act.
I accordingly allow the appeal, set aside the order of the Insolvency Judge and remand the case to him for decision in accordance with law after recording a finding on both the points framed by him. If he finds transaction is a sham one he shall modify the order of the appointment of the receiver suitably so that the receiver is only entitled to recover the agricultural produce or the income from rent from the agricultural land of which the insolvent is a tenant. In the circumstances of the case, I direct that parties shall bear their own costs of this appeal. .;
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