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1999 Supreme(AP) 715

Andhra Pradesh High Court
Judges : VAMAN RAO
Sanapala Narasamma - Appellant
Versus
Mallana Laxminarayana, Kaviti Mandal - Respondent
Decided On : 08-27-99

Headnote:PROVINCIAL INSOLVENCY ACT - Secs.7,11,23&31 - Protection Order - During pendency of insolvency proceedings Judgement-debtor arrested in execution of money decree - Sec.23 does not empower court to pass an order to prevent arrest of Judgement-debtor, who is sought to be arrested and detained in prison for execution of decree - Sec.23 would come into play where debtor is under arrest - Court can order his release excercising power under Sec.23 of Insolvency Act on the basis that he has already arrested on the date of passing of an order.

VAMAN RAO, J.

( 1 ) THIS civil revision petition is directed against the order of Senior Civil Judge of Sompeta dated 27-9-1998 passed in IA No. 178 of 1998 in IP No. 4 of 1996 allowing the said petition filed under Section 31 of the Provincial Insolvency Act filed by the petitioners seeking protection order from arrest and detention in execution proceedings filed by respondent No. 1 herein. The petitioners herein are the respondents Nos. 1 to 4 and the respondent No. 1 herein is the petitioner in the said LA. The parties will be referred to as they were arrayed before the Senior Civil Judge in the said LA.

( 2 ) THE bare facts which are necessary and relevant to the petition may be stated as follows: The petitioner filed an application under Sections 7 and 11 of the provincial Insolvency Act against the respondents-creditors to adjudicate him as insolvent and to discharge liabilities mentioned in the schedule annexed to the petition. The second respondent filed EP No. 2 of 1996 in OS No. 30 of 1989 on the file of the Sub-Court, Sompeta for realisation of decretal amount and has taken coercive steps for arrest. The amount covered by this E. P. was also included in the schedule annexed to the insolvency application. It is stated that the petitioner suppressing this fact, filed an application under Order 21, Rule 37 of CPC for arrest of the petitioner/judgment debtor and arrest warrant was issued in execution proceedings. Hence, this application has been filed for protection order restraining the decree-holder from taking steps for arrest and detention of the petitioner in execution proceedings in EP No. 2 of 1996.

( 3 ) THE Respondent Nos. 1 to 4 opposed the petition and filed a counter. The filing of the insolvency petition by the petitioner (Judgment debtor) is admitted. It is stated that the second respondent has filed EP No. 2 of 1996 in OS No. 30 of 1996 on the file of the Senior Civil Judge, Sompeta under Order 21, Rules 37 and 38 of CPC. On receipt of summons in the execution petition, the petitioner filed IP No. 4 of 1996 under Sections 7 and 11 of Provincial Insolvency Act. The petitioner/judgment debtor failed to appear in the Court and arrest warrant was issued and he was arrested and produced on 1-5-1998 and was released on personal bond of Rs. 50,000-00. The petitioner made an application under Order 21, Rule 106 CPC and it was dismissed on 22-4-1998. On 12-11-1998 the Court issued an order under Order 21, Rule 38. . . . . and in compliance of the order, the petitioner was arrested an produced on 25-11-1998 who is since been lodged in civil prison. Under these circumstances it is stated that there are no grounds for issuing protection order to the petitioner.

( 4 ) THE learned Senior Civil Judge held that the petitioner was entitled to protection order and the petitioner, who was lodged in civil prison, has been directed to be released.

( 5 ) THE only question that arises in the Civil Revision petition is whether during the pendency of Insolvency proceedings an order for protection of the judgment debtor can be passed under Section 31 of Provincial Insolvency Act.

( 6 ) THE learned Counsel for the petitioners contends that Section 31 would come into play only after the judgment debtor has been declared as insolvent and not during the pendency of Insolvency proceedings. Section 31 (1) is extracted below for reference:"31. Protection order :-- (1) Any insolvent in respect of whom an order of adjudication has been made may apply to the Court for protection, and the Court may on such application make an order for the protection of the insolvent from arrest or detention. "a plain reading of this provision would make it abundantly clear that an order for the protection under Section 31 can be passed in favour of the insolvent in respect of whom an order of adjudication has been made. In this case admittedly the insolvency proceedings arc still pending and no order of adjudication has yet been made. The learned Counsel for






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