The High Court allowed a petition under the Presidency Towns Insolvency Act, adjudging the debtors as insolvents based on proved non-payment of a decree amount despite notice returns.
Debtors adjudged as insolvents; their properties vested in the Official Assignee for the benefit of creditors.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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IN THE HIGH COURT OF JUDICATURE AT MADRAS
ORDER RESERVED ON: 31.10.2017
ORDER PRONOUNCED ON: 09.11.2017
CORAM:
THE HONOURABLE MR.JUSTICE R.SUBRAMANIAN
Insolvency Petition No.39 of 2016
Mrs.Shobha Ramesh ... Petitioning Creditor
Vs.
1. M/s.R.K.Distributors, rep by its
Partners, Debtors 2 & 3,
No.254, Mint Street, Cehnai 600 003.
2. Mr.Manjit Singh
3. Mrs.Ranjeet Kaur,
Debtors 2 & 3 are partners of the 1 st debtor firm
carrying on business No.254, Mint Street, Chennai 3
and Residing at No.G-13, Anna Nagar East,
Chennai 600 102. ... Debtors
Prayer: Petition filed under Sections 9 to 13 of the Presidency Towns Insolvency Act, III of 1909 and Order III-A of the Insolvency Rules, 1958 praying (i) to treat this petition as urgent; (ii) to adjudicate the Debtors as Insolvents; (iii) to direct that the estate of the Debtors be vested in the Official Assignee of Madras, for the benefit of the general body of creditor of the Debtors; (iv) to order that the costs of this petition be paid by the Official Assignee of Madras, from and out of the estate of the Debtors to the
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Petitioning Creditor.
For Petitioning Creditor : Mr.T.Srikanth For Debtors : Nil
O R D E R
This petition has been filed under Sections 9 to 13 of the Presidency
Towns Insolvency Act, seeking to adjudicate the debtors as insolvents.
application was dismissed and the suit was eventually decreed on 20.02.2014. Since, the debtors failed to repay the money due to the petitioning creditor as per the said decree, the petitioning Creditor filed I.N.No.32 of 2015 seeking issuance of an Insolvency notice to the debtors.
The said application was allowed and an insolvency notice was issued on 15.12.2015 by this Court. The said Insolvency notice was returned with an endorsement unclaimed. Despite the same, the debtors have not come
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forward to pay the debt due and 35 days period prescribed in the insolvency notice also expired.
examined as P.W.1 and Exs.P1 to P6 were marked.
| Ex.No. | Date | Details |
|---|---|---|
| P1 | 26.10.2017 | Authorization Letter |
| P2 | 20.02.2014 | Certificate copy of the Decree in OS No.170 of 2013 |
| P3 Series |
15.12.2015 | Copy of the Insolvency notices |
| P4 | Three returned covers along with | |
| Series | affidavit of service | |
| P5 | Two returned covers with affidavit of service |
|
| P6 | 20.07.2016 | Publication effected in IA No.32 of 2015 |
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clear that the debtors have committed an act of insolvency within the meaning of Section 9 (2) of the Presidency Town Insolvency Act and they are liable to be adjudged as insolvents.
their properties are directed to be vested in the Official Assignee for the benefit of the General body of creditors. The debtors are given 18 months time to seek discharge.
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R.SUBRAMANIAN,J.
jv
Pre Delivery Order
Insolvency Petition No.39 of 2016
09.11.2017
2 issues framed by the court
Whether the debtors committed an act of insolvency under the Presidency Towns Insolvency Act.
Whether the debtors can be adjudged as insolvents and their estate vested with the Official Assignee.
Mrs. Shobha Ramesh
M/s. R.K. Distributors
Mr. Manjit Singh
Mrs. Ranjeet Kaur
R.Subramanian
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
