The Court annulled an adjudication order and allowed applications to set aside ex-parte orders, finding the insolvency petition filed fraudulently to defeat the rights of a bona fide subsequent purchaser who had discharged a mortgage on the property.
Annulment of the order of adjudication and allowance of applications to set aside ex-parte orders.
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Appln.Nos.254 to 257 of 2018 and Appln.Nos.30 to 34 and 95 of 2019 in I.P.No.8 of 2016
C.SARAVANAN, J.
By this common order, these applications are being disposed of. Appln.No.95 of 2019 has been filed by one Mr.R.Krishnamoorthy, the Power of Attorney holder with whom the insolvent R.Anandhi had signed a lease agreement dated 14.11.2014. Appln.No.95 of 2019 has been filed to annul the order dated 01.04.2016 adjudicating the petitioner in I.P.No.8 of 2016 as an insolvent. The said property had been leased to one Mrs.Dhanabakkialakshmi. There is no dispute that the aforesaid sale agreement and the Power of Attorney was executed by the insolvent R.Anandhi on 14.11.2014 and 08.12.2014.
mortgage, the insolvent filed I.P.No.8 of 2016 on 21.03.2016. By an adjudication order dated 01.04.2016 in I.P.No.8 of 2016 the petitioner was adjudicated as an insolvent.
Appln(IP).Nos.255 to 257 of 2018 have been filed for the following
relief:
| Sl. Nos |
Application Nos. | Relief |
|---|---|---|
| 1 | Appln(IP)No.255 of 2018 | To set aside the ex-parte order dated 05.03.2018 passed in application No.50 of 2018 in I.P.No.8 of 2016 directing to sell the property which is the subject matter of the application on public auction and to release the proceeds for the benefit of the general body of creditors. |
| 2 | Appln(IP)No.256 of 2018 | To set aside the ex-parte order dated 05.03.2018 passed in application No.47 of 2018 in I.P.No.8 of 2016 declaring sale deed dated 06.03.2017 registered on 14.03.2017 held to be void. |
| 3 | Appln(IP)No.257 of 2018 | To set aside the ex-parte order dated 05.03.2018 passed in application No.49 of 2018 in I.P.No.8 of 2016 directing the 3rd and 4threspondents to deliver the vacant position of said property with all documents of title in their possession to the official assignee. |
Appln(IP).Nos.255 to 257 of 2018 would submit that the applicant is a
bonafide and an innocent purchaser who has purchased the property on the strength of the power of attorney given by the insolvent to the applicant in Appln.No.95 of 2019. It is therefore submitted that the order adjudicating the debtor as an insolvent on 01.04.2016 is liable to be recalled.
Act, 1909. Hence, the order of adjudication made on 01.04.2016 is not required to annulled. It is submitted that there are no circumstances which would warrant invocation of Section 21 of the Presidency Town Insolvency Act, 1909.
intention only to defeat the rights of the applicant in Appln.No.95 of 2019 who
discharged the mortgage which was subsisting on the date of the agreement on 14.11.2014 with one Mrs.Dhanabakkialakshmi.
of adjudication stands annulled. Consequently, connected applications
filed by the purchaser also stands allowed.
01.03.2024
jas
C.SARAVANAN, J.
jas
Appln.Nos.254 to 257 of 2018 and Appln.Nos.30 to 34 and 95 of 2019 in I.P.No.8 of 2016
01.03.2024
3 issues framed by the court
Whether the adjudication order as an insolvent was bona fide or filed with an intention to defeat the rights of a subsequent buyer.
Whether the petition was filed within the time limits under Section 14 of the Presidency Town Insolvency Act, 1909.
Whether the adjudication order can be recalled under Section 21 of the Presidency Town Insolvency Act, 1909.
2 provisions across 1 enactments
R.Anandhi
R.Krishnamoorthy
Gubba Suresh
C.Saravanan
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
