A single judge of the Madras High Court dismissed a civil miscellaneous appeal challenging the dismissal of an insolvency petition filed in 2005. The court upheld the lower court’s finding of lack of bona fides and evidence.
The Civil Miscellaneous Appeal stands dismissed with no costs.
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.
C.M.A.(MD) No.412 of 2010
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 21.08.2024
CORAM
THE HON'BLE MR.JUSTICE SUNDER MOHAN
C.M.A.(MD) No.412 of 2010
Mohammed Ilyas. ... Appellant
Vs.
1.Shir Ambika Chit funds, 197, Katcheri Road, Mylapoor, Chennai – 4.
2.Ashok, 3.Aris kumar, 4.J.K.Mettha, 5.Mettha Syndicate, Shanthi Nekkethan, 43, Aathiappa Nayakkan Street, 1st Floor, Plot No.11, Savkar Pettai,Chennai – 79.
6.Mettha Brothers, 34/62, Veerappan Street, Savkar Pettai, Chennai – 79.
7.Vasu Thulkani,
8.Gopal doss & Groups, Ground port apartment, 204, 2nd Floor,
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C.M.A.(MD) No.412 of 2010
Plot No.13, Bank Street, Keelpakkam, Chennai – 10. 9.Navathiva Chit Funds, 52/41, Shenkalvarayan Street, Thiruvallikeeni, Chennai – 5. 10.Pradeep, 11.Ramraj, 12.Viswanathan & Co, 50/22, Natchiappan Street, Mylapoor, Chennai -4. 13.Sekar Brothers, 46, Vithiyanathan 1st street, Savkar Pettai, Chennai – 79. 14.Shri Chinki Brothers, 15, Stattan Muthiah Street, Savkar Pettai, Chennai – 79. 15.Dharshan Traders, 79, Govinthappa Nayakkan Street, Savkar Pettai, Chennai – 79. 16.Jute Traders, 60, Athiyappa Nayakkar Street, Savkar Pettai, Chennai – 79. 17.Bangaj Kumar & Co. 20/39, Athiyappa Nayakkar Street, Savkar Pettai, Chennai – 79.
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C.M.A.(MD) No.412 of 2010
18.General Trading Point, 41/8, Stattan Muthiah Street, Savkar Pettai, Chennai – 79. 19.Royal Food Product, 18, Stattan Muthiah Street, Savkar Pettai, Chennai – 79. 20.K.K.Ram, 21.Ravi & Co., 65, Solaiappan Street, Chennai – 28. 22.Saira Marketing, 65/29, St.Maries Road, Manthaveli, Chennai – 28. 23.Jegi Agencies, 23, South West Road, Thiagaraya Nagar, Chennai -8. 24.Hema Enterprises, 24,Chinna Chetti Street, Elumboor, Chennai – 8. 25.Vijay Traders, 23, Shek Thavood Street, Rayapetti, Chennai -14. 26.K.V.Traders, 10, Bleak Stop Street, Royapuram,
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C.M.A.(MD) No.412 of 2010
Chennai – 13.
27.S.P.K.Dhal Merchant, 456/650, Thiruvetriyoor High Road, Thandaiyar Pettai, Chennai – 81.
28.R.Thirumal,
29.Vasuvi Ens Mercent, 135/2, Annapillai Street, Savkar Pettai, Chennai -81. 30.Vasuvi Chelli Merchant, 25, Chinna Thambi Muthali Street, Chennai – 79.
31.Taj Traders, 66/90, Aatchariappan Street, Chennai -1.
32.Savaran & Co., 2,Avathana Ramasamy Lane, Vannar Pettai, Chennai – 21.
33.Arshat Ali, 34.Shahul Hameed, 35.R.Rajasekaran, 36.Venkatahcalam, 37.Rajan, 38.Shanthi & Selvi, 8/23, 2nd Floor, Nattu Veeratchi Street, Mylapoor, Chennai – 4. 39.Dharumalingam,
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C.M.A.(MD) No.412 of 2010
40.Raja, 41.Ganesan, 42.Perumal, 43.Velmurugan, 44.Mount Mani Iyer, 5/9, Managalam Apartment, 2nd Floor, 3rd Main road, Nanthvanam, Chennai -18. 45.Union Bank of India, Mylapoor Branch, Mylapoor, Chennai – 4. 46.J.Abdul Jappar 47. I.C.I.C.I Bank Personal Loan-L.P.C.H.E-002840069, Kottur Puram, Chennai.
48.HDFC Bank Personal Loan No.921/29, 56, G.N.Chetti Road, T.Nagar, Chennai-17. 49.City Bank Personal Loan, Anna Salai, Chennai-2. 50.Shri Gokulam Chit Fund 356, Arkad Road, Vada Palani, Chennai-24.
51.I.C.I.C.I. Credit Card(Division), No.4477473519146000, Chennai.
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C.M.A.(MD) No.412 of 2010
53.S.C.B.Credit Card No.4129037082867789, Dr.Radhakrishnan Road, Chennai-4.
54.H.D.F.C. Credit Card Division No.4346771706726939, Gousalya Tower, 96, Anna Salai, Chennai.
55.S.V.N.Agro Oil Merchant 1/66, Vengaivasan Main Road, Chellaiyoor Post, Chennai-73.
56.S.V.Traders 53, Karneeswarar Koil Street, Mylapoor, Chennai-4. 57.S.I.F.Roofchand, 19/20, Rayapuram Road, Rayapuram, Chennai.
58.Shek Mohammed
59.Shri Prakash Traders 113, Varadha Muthiappan Street, Paris, Chennai-1.
60.Tamil Nadu Oil Industries 18, 5th Street, Bakthavatchalam Nagar, Adaiyar, Chennai-20.
61.Jeyalakshmi Agency 5, 1st Cross Street, Raja Annamalaipuram, Chennai-28.
62.T.Rajan
63.Jeyalakshmi Agency
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C.M.A.(MD) No.412 of 2010
55, 1st Street, Parameswari Nagar, Adaiyar, Chennai-20.
64.United Confication 2, Dhagir Shakibu Street, Market Lane, Mount Road, Chennai-2. 65.V.V.M.V.Rice Mill, 2, N.N.Garden, 6th Lane, Old Vannarapettai, Chennai-21. 66.Haris Traders 3, Somu Chetti Street 2nd Lane, Chennai-13. 67.Shri.Arun Junai Traders 17, Srirangammal Street, Vannarapettai, Chennai-21. 68.L.G. & Co., 53, Perumal Muthali Street, Soukarpettai Street, Chennai-79.
69.Airtel 101, Santhom High Road, Chennai-28.
70.S.V.Traders 8, T.A.Street, Mylapoor, Chennai-4. 71.T.Murugesan
... Respondents
Prayer: Civil Miscellaneous Appeal filed under Section 75(2) of Civil Procedure Code against the decreetal order dated 04.11.2009 passed in I.P.No.7 of 2005 on the file of the 1st Additional District Court, Tirunelveli.
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C.M.A.(MD) No.412 of 2010
For Appellant : Mr.H.Arumugam For Respondents : for R1 to R6, R8 to R13, R15 to R44, R44 to R49, R51 to R71 : Ex parte R7 : Died R14, R45 & R50 : No appearance
J U D G M E N T
The instant appeal has been filed challenging the order passed in Insolvency Petition No.7 of 2005, wherein, the petition, filed by the appellant herein to declare him as insolvent, was dismissed by the Court below.
the Insolvency Petition was filed, stating that the petitioner/appellant was doing grocery business at Chennai in the name and style of 'Patel Stores' and was earning substantial income till 2004, after which he incurred heavy losses in the business and hence, returned to Tirunelveli; and that the ‘A’ schedule in the petition contains a list of persons, to whom the appellant is liable to make payment and the ‘B’ schedule contains a list of persons, who are due to pay money to him.
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C.M.A.(MD) No.412 of 2010
a. The respondents, except for two of them, were residents of Chennai and the two respondents, namely, respondents 37 and 71, who were the residents of Tirunelveli, have been impleaded only to bring the case within the jurisdiction of this Court.
b. Though the list of persons have been mentioned in the ‘B’ schedule, from whom, the appellant is entitled to recover the money, no evidence has been produced to show as to how the said persons were liable to pay money to him, and that the evidence of P.W.1 and his explanation for not furnishing the details of his debtors are not acceptable.
5.The point for consideration in the instant appeal is ‘whether the appellant can be declared as an insolvant.
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C.M.A.(MD) No.412 of 2010
dismissing the Insolvency Petition filed in the year 2005, does not require any interference. Further, in any case, the Insolvency Petition was filed in the year 2005 and since then 20 years have passed. For the said reason also, the order passed by the Court below need not be interfered with. The point is answered accordingly.
No costs.
21.08.2024
Index: Yes/ No NCC: Yes / No Speaking Order / Non-Speaking Order apd
To: 1. The I Additional District Judge, Tirunelveli.
2.The Record Keeper, V.R.Section, Madurai Bench of Madras High Court, Madurai.
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C.M.A.(MD) No.412 of 2010
SUNDER MOHAN, J.
apd
C.M.A.(MD) No.412 of 2010
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C.M.A.(MD) No.412 of 2010
21.08.2024
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2 issues framed by the court
Whether the appellate court can interfere with the lower court’s dismissal of the insolvency petition lacking evidence and bona fides.
Whether the passage of twenty years since the filing of the insolvency petition warrants dismissal of the current appeal.
Mohammed Ilyas
Shir Ambika Chit funds
Ashok
Aris kumar
J.K.Mettha
Mettha Syndicate
SUNDER MOHAN
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
