M.Dhanalakshmi v. Vasundhra
Case brief
What is this about?
Held that a sale by an insolvent after being adjudicated is void. The Official Assignee is entitled to the property regardless of whether the purchaser claimed bona fide status or the transaction date.
What did the court decide?
Relief sought to release property purchased by applicant was denied as the sale after adjudication was void.
What the court decided
1
A.No.230 of 2018 in
I.P.Nos.115 & 134 of 1999
R.SURESH KUMAR, J.
The prayer sought for herein is to direct the Official Assignee to release the applicant's property morefully described in the Schedule to the Judge's Summons purchased by the applicant by way of a Sale Deed dated 28.03.2002 registered with Sub Registrar, North Chennai as Document No.285 of 2002 as a bonafide transaction as per Section 57(c) of the Presidency Town Insolvency Act 1909, which is binding on the first respondent herein.
- Heard Mr.K.V.Anantha Krishnan, learned counsel appearing for the Official Assignee as well as Mr.A.Babu, learned counsel appearing for the petitioning creditor in the main application.
- Against the second respondent / insolvent, the petitioning creditor filed two IP's i.e., I.P.Nos.115 & 134 of 1999, some time in July and October 1999. In the main IP, ex-parte order was passed on 08.10.2001. Thereafter, on 10.03.2002, the petition to set aside the ex-parte order filed by the second respondent / insolvent was dismissed and thereafter, ex-parte adjudication order was passed declaring the second respondent / insolvent as Insolvent, by order of
2
Issues for consideration
1 issue framed by the court
Whether a sale of insolvent property by the insolvent after adjudication can be treated as a bona fide transaction binding on the official assignee.
Parties & counsel
- applicant
Third Party Purchaser
- respondent
Official Assignee
- respondent
Insolvent / Second Respondent
Coram
Case details
As recorded by the court registry
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