M. Satyanarayana Murthy, J.

1. Aggrieved by the Judgment dated 29.10.2010 passed by the IV Additional District Judge, Kurnool in A.S. No. 124 of 2007, the present appeal is preferred by the respondents in I.P. No. 8 of 2006, wherein the 1st respondent was adjudged as an insolvent having found that he had committed an act of insolvency under Section 6(1)(b)of the Provincial Insolvency Act (for short 'the Act').

2. For convenience, the parties to the appeal will hereinafter be referred to as appellants and respondents.

3. The respondents claiming to be creditors of the 1st appellant filed petition under Section 9 of the Act to adjudge him as insolvent on the ground that he alienated his substantial part of his property to defeat and delay the claims of creditors, alleging that the 1st appellant herein borrowed an amount of Rs. 1,25,000/- for construction of building agreeing to repay the same with interest, but failed to pay the same due to the 1st respondent herein. On 03.08.2002, on enquiry, the 1st respondent came to know that the 1st appellant with a view to defraud the creditors executed a sham and nominal document i.e. gift settlement deed in favour of appellants 2 and 3 o