Judgment

K. Venkataswami, J.-A short question that arises for consideration in this appeal is that what is the meaning to be ascribed to the words “all acts theretofore, done, by the Court or receiver, shall be valid;” occurring in Section 37(1) of the Provincial Insolvency Act, 1920 (hereinafter called the Act). Brief facts are given as hereunder.

2. The deceased respondent Rajaram Bapu Lakule (hereinafter called the debtor) was the original owner of a suit property, namely C.T.S. No. 926 Peth Baug, Sangli, Bombay. By a deed of mortgage by conditional sale dated 22.1.1962 (Ex. 41), he transferred the suit property in favour of the appellant (hereinafter called the creditor) for a sum of Rs. 7,500. The condition was that on the amount of Rs. 7,500/- if repaid within five years of the execution of the document, the proper­ty was to be reconveyed to the debtor. On 8.1.63 within one year from the date of conditional sale, the debtor executed another document (Ex. 42) a regular sale deed after receiving an additional amount of Rs. 500/-. On 9.4.63 Insolvency Application 5/63 was filed by one of the creditors of the debtor to get an adjudication as insolvent against the debtor. In 1964, t