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1956 Supreme(AP) 142

K.SUBBA RAO, P.SATYANARAYANA RAJU, VISWANATHA SASTRY
LOKANATHAM SRIRANGAMMA – Appellant
Versus
GANAGALLA NARAYANAMMA – Respondent


K. SUBBA RAO, J.

( 1 ) THE question in this Second Appeal is whether a person who in good faith purchased the property of a debtor under a sale held in execution after he was adjudged insolvent under Sec. 74 of the Provincial Insolvency Act would acquire good title to it against the Receiver. There are conflicting decisions on the question whether such a sale, after the adjudication of the debtor as insolvent, would confer a good title on the purchaser. Burn and Mockett JJ. in Mallikarjuna Rao v. Official Receiver Kistna held that a Court executing a decree has no power to sell a judgment-debtor s property after the judgment-debtor has been adjudicated insolvent because upon adjudication the judgment-debtor s property at once vests in the Official receiver and the debtor has nothing to sell. On the other hand, Yenkata subba Rao and Cornish JJ. observed in Muthan Chettiar v. Venkataswami Naicke that as a matter of construction, it would follow that, even in regard to a sale held after the date of adjudication, a bonafide purchaser would under subsection 3 of Section 51 of the Provincial Insolvency Act be protected. Lionel leach C. J. , and Kuppuswamy Ayyar J. in Guraviah v. Rangiah

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