Official Assignee/ M/S. Otarmal Kantilal and Co., vs Maya Pankaj Patel and Bharti K. Joshi — Bombay HC (2026) — LawSathi Research

Official Assignee/ M/S. Otarmal Kantilal and Co., vs Maya Pankaj Patel and Bharti K. Joshi — Bombay HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

Indemnity to be given by another (non-insolvent) person in place of the senior-citizen insolvent no.1 within four weeks; on clearance of the cheques handed over, the Official Assignee to remit Rs.2 lakhs to the petitioning creditor M/s. Otarmal Kantilal and Co. & Ors., after which no further claim would lie by the petitioning creditors against insolvent no.1; Rs.2 lakhs to be deposited in the estate account of Mr. Kiran Hiralal Joshi in Insolvency Petition No.15 of 2017; Official Assignee's Report disposed of in terms of prayer clause (B).

Issue for consideration

Whether the indemnity to be filed by insolvent no.1, a senior citizen, may be replaced with an indemnity given by another person. +2 more

Court's answer

The request that the indemnity be given by another person in place of the senior-citizen insolvent no.1 is accepted, and such indemnity is to be given within four weeks.

Ratio / Principle

The person furnishing the indemnity must not be an insolvent person.

Key takeaways

Once the cheques handed over in Court are cleared by the office of the Official Assignee, the Official Assignee will remit Rs.2 lakhs to the petitioning creditor M/s. Otarmal Kantilal and Co. & Ors.ratio¶20
On receipt of the said amount by the petitioning creditor, no further claim would lie by the petitioning creditors against insolvent no.1.ratio¶20
Official Assignee's Report No.55 of 2025 would not survive, except that the amount of Rs.2 lakhs be deposited in the estate account of Mr. Kiran Hiralal Joshi in Insolvency Petition No.15 of 2017.

Detailed headnote1 paragraphs

Bombay High Court (Insolvency Jurisdiction), Coram: JITENDRA JAIN, J.; decided 6 March 2026. Official Assignee's Report No.55 of 2025 in Insolvency Petition No.36 of 2018 (Maya Pankaj Patel & Anr., insolvents; M/s. Otarmal Kantilal & Co. & Ors., petitioning creditors). Held: (i) the request of insolvent no.1, a senior citizen, that the indemnity be furnished by another person instead of by him was accepted, the indemnity to be given within four weeks, and the person giving the indemnity must not be an insolvent; (ii) once the cheques handed over in Court are cleared, the Official Assignee will remit Rs.2 lakhs to the petitioning creditor, and on receipt of that amount no further claim would lie by the petitioning creditors against insolvent no.1; (iii) the Report would not survive except that Rs.2 lakhs be deposited in the estate account of Mr. Kiran Hiralal Joshi in Insolvency Petition No.15 of 2017; the Report was disposed of in terms of prayer clause (B).

Sayyed

9-OAR.55.2025.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION IN ITS INSOLVENCY JURISDICTION

OFFICIAL ASSIGNEE’S REPORT NO.55 OF 2025 IN

INSOLVENCY PETITION NO.36 OF 2018

Re :

Maya Pankaj Patel & Anr. …Insolvents

Ex-parte : M/s. Otarmal Kantilal & Co. & Ors. ...Petitioning Creditors

Mr. Devang R. Sanghavi for Insolvent No.1.

Mr. Darshit K. Jain a/w Ms. Arushi Gandhi & Mr. Udit Raghuwanshi i/by Mrs. Divya D. Jain for the Petitioning Creditors.

Ms. C. J. Bhatt, Official Assignee a/w Mr. Subodh Patil, Deputy Official Assignee present.

Mr. D. B. Iswalkar, I/C. Insolvency Registrar present.

CORAM : JITENDRA JAIN, J. DATE : 6 MARCH 2026

P.C.:

In furtherance of the order dated 13 February 2026, Mr. Sanghavi, learned counsel for insolvent no.1 states that the insolvent no.1 is a senior citizen who is ready to deposit Rs.2 lakhs and the commission with the office of Official Assignee. He hands over the cheques to the Official Assignee in the Court. However, he requests that since the person giving the money is a senior citizen, the order of filing the indemnity by the senior citizen should be replaced with an indemnity by another person.

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9-OAR.55.2025.doc

Sayyed

The above request of giving indemnity by another person is accepted and such indemnity will be given within four weeks from today.

Once cheques handed over today are cleared by the office of the Official Assignee, the Official Assignee will remit Rs.2 lakhs to the petitioning creditor – M/s. Otarmal Kantilal and Co. & Ors. and on receipt of the said amount by the petitioning creditor, no further claim would lie by the petitioning creditors against insolvent no.1.

It is clarified that the person giving indemnity should not be an insolvent person.

In view of above, the Official Assignee’s Report No.55 of 2025 would not survive except that the amount of Rs.2 lakhs be deposited in the estate account of Mr. Kiran Hiralal Joshi in Insolvency Petition No.15 of 2017.

In view of above, Official Assignee’s Report is disposed of in terms of prayer clause (B).

[ JITENDRA JAIN, J. ]

Signed by: Sayyed Saeed Ali Designation: PA To Honourable Judge Date: 07/03/2026 15:20:26

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