C. V. N. SASTRY, J.

( 1 ) THIS second appeal involves an interesting question of law regarding the application of the provisions of the A. P. Act. 7/77 vis-a-vis the Provincial Insolvency act. The second appeal arises out of a suit for foreclosure of a mortgage deed dated 24-5-1967 executed by the first defendant in favour of the plaintiff-appellant for a principal amount of Rs. 5,000/ -. The suit was instituted in the year 1977. Long before the institution of the suit i. e. , on 1-9-1972, the first defendant-mortgagor filed I. P. 13 of 72 on the file of the Sub-Court, Madanapalle for adjudging him as an insolvent. On 31-7-1974, the Official Receiver was appointed as interim Receiver to take possession of the properties of the first defendant and ultimately an order adjudging the first defendant as insolvent was passed on 25-1-1975. In the course of the administration of the estate of the insolvent, the Official Receiver sold the mortgaged property which is a residential house belonging to the insolvent in March, 1975. In the said sale, the 5th defendant purchased the said property subject to the mortgage in favour of the plaintiff. The sale was duly confirmed by the insolvency cour

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