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B. S. BHANUMATHI
Chavana Rajendra Prasad – Appellant
Versus
Orchu Jagannadam – Respondent
JUDGMENT :
B.S. Bhanumathi, J.
This appeal is filed under Section 75 (1) of Provincial Insolvency Act r/w Section 100 of C.P.C against the Decree and Judgment Dt. 22.12.2022 passed in A.S No. 5 of 2022 on the file of the court of III Addl. District Judge, Rajampet.
2. The appellant herein/ petitioner in I.P filed I.P.No.1 of 2013 on the file of Principal Senior Civil Judge, Rajampet under Sections 9 and 13(2) of Provincial Insolvency Act seeking the relief to declare the 2nd respondent herein/ 1st respondent in I.P. as insolvent and set aside the registered sale deed dated 04.06.2012 executed by the 2nd respondent herein in favour of the 1st respondent herein/ the 2nd respondent in I.P. and to vest the B schedule property with the official receiver for sale and discharge the debt under the promissory note to the petitioner. Hereafter, the parties are referred as before the trial Court.
3. The brief averments in the petition are as follows:
It is the case of the petitioner that the 1st respondent borrowed a sum of Rs.2,00,000/- (Rupees two lakhs) from the petitioner to meet his legal necessities and executed a demand promissory note on the even date i.e., on 21.11.2009 agreeing to repay
A creditor must establish the existence of a debt through prior adjudication before initiating insolvency proceedings against a debtor under the Provincial Insolvency Act.
The central legal point established in the judgment is the requirement for a valid debtor-creditor relationship and the need to prove the act of insolvency before adjudication under the Provincial In....
The Insolvency Court lacks jurisdiction to annul transactions if the debtor has not been legally adjudicated as insolvent, rendering such annulments void.
The court established that agreements of sale and power of attorney do not constitute a transfer of property under the Provincial Insolvency Act, affecting the limitation period for insolvency petiti....
Insolvency law requires the burden of proof for insolvency claims to rest with creditors, and purchasers must demonstrate bona fide acquisition under the Provincial Insolvency Act.
The burden of proof lies on the creditor to establish fraudulent intent in property transfers to declare a debtor insolvent; mere non-payment of debt is insufficient.
The burden of proving the contrary in insolvency proceedings is on the debtor, and the legal provisions create a presumption that the debtor has committed an act of insolvency if he fails to comply w....
In a case where no receiver is appointed, a creditor can make an application for annulment of a transfer under Section 53 of the Provincial Insolvency Act without obtaining prior leave of the Court.
The Appellant's suppression of material facts and false statement on oath, the requirement to discharge the debts of all creditors including the Respondent Bank in order to seek an order of annulment....
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