ULFATRAI MANIRAM VAISHYA Vs. PROPRIETORS OF FIRM RAMCHARANLAL SHRIKRISHNALAL

JUDGEMENT

(1.) THIS is an appeal under Clause 10 of the Letters Patent against an order of a single Judge passed in Civil Misc. Appeal No. 2 of 1959, upholding the decision of the Additional District Judge, Gwalior, in insolvency proceedings.

(2.) THE facts out of which this appeal arises in short are that one Shantilai filed a petition dated 4-2-52 in the Insolvency Court, Gwalior, alleging that he had dealings with the Firm known as "ramcharan Lal Shrikishen" of which Jagannath and Madanial are the owners, that a sum of Rs. 1864/7/9 is due from the firm, that the firm is heavily indebted to many other persons (the names and the amount due from the firm is then given) and that the firm is unable to liquidate its debts. It was also alleged that the owners of the Firm (Jagannath and Madanlal) had transferred to Agra its goods to some persons as trustees and that the only property left in Lashkar, Gwalior, is some cloth and a shop. The petitioner prayed that the owners of the firm be adjudged insolvents and that money be distributed rateably among all the creditors. Mr. Murlidhar Maheshwari, an Advocate of this court was appointed a Receiver on 4-2-52 and on 3-3-53, the court made an order of adjudication and Jagannath and Madanlal were adjudged as insolvents.

(3.) BEFORE the distribution of any dividend, on 5-8-53, one Ulfat Rai (the present applicant) filed a petition, stating he has a firm under the style and name of maniram Ulfatrai, Bhind, that he is the owner of the above firm, which had dealings with the firm of Ramcharanlal Shrikishenlal, Lashkar, of which the two insolvents are the owners, that a sum of Rs. 17,493a including interest is due to his firm from the insolvents and that he be allowed to prove his debt.