K. JAYACHANDRA REDDY, J.

( 1 ) THE question of law that arises in this revision petition is whether a petition presented by a creditor under the provisions of the Provincial Insolvency Act 1920, hereinafter referred to as "the Act" can be dismissed under section 25 of the act on the basis of the plea of the debtor s transferee that the debtor has means to discharge the debt.

( 2 ) TO appreciate the question involved, the necessary facts may be stated. For the purpose of better appreciation and convenience, the parties are referred to as they are arrayed in the Insolvency Petition. The petitioner is the creditor and the 1st respondent is the debtor who is said to have borrowed from the petitioner Rs. 3600/- for his family necessities and did not discharge the debt. The other two respondents are the alienees. The insolvency petition was contested by the alienees, but the debtor (viz. . the 1st respondent) remained exparte. The learned Subordinate Judge dismissed the I P holding that where on the facts proved and assets established it is clear that the debtor is in a position to pay his debts, the Court is bound to dismiss the insolvency petition of the creditor under section 25 (1) of

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