E M JACKIRIA SAHIB Vs. OFFICIAL RECEIVER WEST TANJORE

JUDGEMENT

(1.) THIS appeal is filed by the purchaser of the property from the insolvent against the order of the learned District Judge, West Tanjore, allowing the petition of the official receiver annulling the sale-deed in his favour.

(2.) THE property was owned by the insolvent Balakrishna Naidu and his brother kannan. They were running a coffee hotel in the property in question. But the business failed and Balakrishnan got himself involved in debts. He executed the impugned sale-deed for himself and as guardinan of his minor brother and minor sons to the appellant on 27-8-1956 for a sum of Rs. 32,000. The sale deed was registered on 24-9-1956 for adjudicating Balakrishna Naidu as insolvent on the ground that the sale-deed in question was an act of insolvency. Balakrishna Naidu was adjudged as an insolvent by an order 3-12-1956.

(3.) ONE S. L. Ct. Lakshmanan Chettiar, a creditor of the insolvent, obtained a decree against the insolvent for Rs. 600/- in S. C. No. 67 of 1955, on the file of the Sub-Court, Kumbakonam and attached the property in dispute on 25-9-1956 in E. P. No. 107 of 1956. The appellant herein preferred a claim of the property and objected to the attachment. The claim petition was allowed by the Court on 34-1957 for setting aside the order in the claim petition and for a declaration that the property was liable to attachment. Lakshmanan Chettiar filed a petition for leave to sue on behalf of all the creditors of the insolvent. This petition was allowed by the Court on 12-9-1957. In the suit no notice was given to the official receiver. After trial the learned District Munsif dismissed the suit on 18-4-1958 holding that the purchase by the appellant was bona fide and for consideration and that the summary order passed by the learned Subordinate Judge was valid. He also held that the transaction was not in fraud of the creditors.