This is a revision preferred under the second proviso to Section 75 of the Provincial Insolvency Act, 1920 (for short ‘the Act’), as extended to the State of Andhra Pradesh under the Provincial Insolvency (Andhra Pradesh Extension and Amendment) Act, 1965.

The revision is directed against the judgment and decree dated 23-03-2006 of the learned II-Additional District Judge, West Godavari District at Eluru in A.S.No.169 of 2001, reversing the judgment and decree in I.P.No.7 of 1998 dated 14-08-2001 passed by the learned Additional Senior Civil Judge, Eluru. The appellate Court allowed the appeal; set aside the order of the trial Court adjudged the 1st respondent as insolvent; and appointed the Official Receiver, West Godavari District as Receiver to administer the petition schedule properties.

The facts leading to the Revision:

The 2nd respondent (the insolvency petitioner), filed I.P.No.7 of 1998 initially against the 1st respondent (Gutta Nageswara Rao) and Gutta Prapoorna. The revision petitioner was brought on record as the 3rd respondent and the legal representative of Gutta Prapoorna, who died pending the insolvency proceedings, by the order dated 21-06-2001 in I.A.N