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1889 Supreme(Cal) 98

CALCUTTA HIGH COURT
W. Comer Petheram, C.J, Pigot, J.
In Re: Rash Behari Roy & Anr. - Appellant
Decided On : 23-08-1889

Headnote:

Imprisonment - Insolvency - Section 50 of the Insolvent Act - Conviction of Specific Offences - Legal Evidence - Finding of Fact - [11 and 12 Vic, chap. 21, Section 50, Section 51] - The court held that the Commissioner of Insolvency must be satisfied by legal evidence that the insolvent has committed a specific offence under Section 50 of the Insolvent Act before imposing imprisonment. The court found that the Commissioner's order was invalid as it did not specifically find that the insolvents had committed any of the offences enumerated in Section 50. The court also found that the order included an offence under Section 51, which has a different sanction, and that the order did not specify what portion of the punishment was awarded for each offence.

Fact of the Case:

The appellants, who were brothers, were adjudicated insolvents in August 1886. They were opposed by certain creditors when they came up for examination before the Commissioner of Insolvency. The Commissioner found that the appellants had committed certain offences under Section 50 of the Insolvent Act and ordered them to be imprisoned for a year.

Finding of the Court:

The court found that the Commissioner's order was invalid because it did not specifically find that the appellants had committed any of the offences enumerated in Section 50 of the Insolvent Act. The court also found that the order included an offence under Section 51, which has a different sanction, and that the order did not specify what portion of the punishment was awarded for each offence.

Issues: Whether the Commissioner of Insolvency must be satisfied by legal evidence that the insolvent has committed a specific offence under Section 50 of the Insolvent Act before imposing imprisonment. Whether the Commissioner's order was valid.

Ratio Decidendi: The court held that the Commissioner of Insolvency must be satisfied by legal evidence that the insolvent has committed a specific offence under Section 50 of the Insolvent Act before imposing imprisonment. The court found that the Commissioner's order was invalid as it did not specifically find that the insolvents had committed any of the offences enumerated in Section 50. The court also found that the order included an offence under Section 51, which has a different sanction, and that the order did not specify what portion of the punishment was awarded for each offence.

Final Decision: The court quashed the order committing the appellants to jail and ordered their release.

JUDGMENT

W. Comer Petheram, C.J. - This is an appeal from an order of Mr. Justice Trevelyan while sitting as Commissioner in Insolvency, and by which he committed two persons, who were insolvents and within the jurisdiction of the Court, to be imprisoned on the criminal side of the jail for a period of one year. That order was made by the learned Judge under the provisions of Section 50 of the Insolvent Act, and it is necessary to examine, for the purpose of what I have to say, the provisions of that section rather closely. That section provides "and be it enacted that in case it shall appear to any Court for the relief of insolvent debtors that any such insolvent has fraudulently, with the intent to conceal the state of his affairs, or to defeat the objects of this Act, destroyed or otherwise wilfully prevented or purposely withheld the production of any book, paper or writing relating to such of his affairs as are subject to investigation under this Act, or kept or caused to be kest false books, or made false entries in, or withheld entries from, or wilfully altered or falsified any such book, paper, or writing, or that such insolvent has fraudulently, with intent of diminishing the sum to be divided among his creditors, or of giving an undue preference to any of the said creditors, discharged or concealed any debt due to or from the said insolvent, or made away with, changed, mortgaged, or concealed any part of his property, of what kind soever, such Court shall have power to adjudge that the insolvent shall be imprisoned for a period or periods not exceeding two years in the whole, as such Court shall direct, and to declare him entitled to his discharge as aforesaid at the expiration of the term of imprisonment to which he shall be sentenced, and by warrant under the seal of the Court to order him to be arrested and committed to prison and there to be detained accordingly. "Now the matter came before Mr. Justice Trevelyan in this way: The appellants, the insolvents, were persons who had carried on a considerable trade for some years (they were brothers), and in August 1886 they were adjudicated insolvents on the petition of some of their creditors. The creditors, upon whose petition they were adjudicated insolvents, were not the opposing creditors at that time, but when they came up to be examined before the Commissioner of Insolvency, they were opposed by certain other creditors, and it was upon that opposition that this order was made. Prior to that order the books of these persons had been examined, they themselves had been examined and cross-examined, and certain witnessess had also been examined and cross-examined, and upon that the Commissioner came to certain conclusions and made an order in this form. As I said just now that order was made under the section of the Act which I have just read, and the first question we must consider here is what must have been made to appear to the Court, and in what way it must have been made to appear, before he had power to make an order under this section.

2. It is clear on the face of the section that it provides a punishment by way of penalty for the commission of certain offences, which punishment is to be administered by the Commissioner of Insolvency if it is made to appear before him that these particular offences have been committed. Speaking for myself, and I think for my brother PlGOT also, I am clearly of opinion that the words "in case it shall appear" in this section must mean, in case it shall appear by legal evidence that the person to be punished has committed the specific crime he is said to have committed, and that before any person can he punished under that section, he must be shown by legal evidence to have committed one or other of the offences which are enumerated in the section, and that it is not enough for the Commissioner, upon the matter coming before him, to be satisfied that this is a very suspicious commercial case, or to be satisfied generally that th

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