PATEL J.-The matter has been referred to a Division Bench as it involves an important question of the practice and procedure followed in the Insolvency Court.

2. The facts are few and may shortly be stated. On the petition by B. R. Herman and Mohatta (India) Private Ltd., the applicant before us, Khushalchand B. Daga, was adjudicated insolvent on July 6, 1960. On September 2, 1960, the insolvent took out a notice of motion for annulment of the adjudication. Apparently, the notice of motion is yet not disposed of but the insolvency proceedings were stayed by the Court. The Punjab National Bank Ltd., who is the opponent before us, made a claim against the insolvent in the sum of Rs. 58,56,000 on the basis of guarantee furnished by him against a loan to Model Mills. The bank also accepted that H held security of debentures of the Model Mills of the face value of Rs. 22,25,000. Before the applicant was adjudicated insolvent, on October 4, 1958, a petition for winding up of the Model Mills was filed. On July 7,1959, the Government appointed the Authorised Controller by a notification and on July 28, 1962, the Company Court sanctioned a Scheme framed by him., This Scheme was su