BALASUBRAMANYAN
K. Maranaicken – Appellant
Versus
R. S. Saradhambal – Respondent
What is the effect of Tamil Nadu Indebted Agriculturists (Temporary Relief) Act, 1975 on maintainability of an insolvency petition under the Provincial Insolvency Act? What is required to prove an act of insolvency under S.6(b) of the Provincial Insolvency Act in the context of debtor's sale of property? Under what circumstances should an insolvency petition be dismissed under S.25(1) of the Provincial Insolvency Act?
Key Points: - (!) - [21000237690002] - [21000237690005] - (!) - [21000237690004] - [21000237690006] - [21000237690007] - [21000237690008] - [21000237690009] - [21000237690010]
ORDER :- In this revision under the Provincial Insolvency Act. 1920 from the appellate order of the District Court, the question is whether an order of adjudication passed against a debtor is valid ? The act of insolvency alleged by the petitioning creditor against the debtor was that within three months of the presentation of the insolvency petition, the debtor has alienated the most valuable property of his to a third party. The debt due to the petitioning creditor was under a promissory note. It was for Rs. 5350. The debtor has realised Rs. 33,000 from the sale of some of his properties and yet from out of the proceeds, he did not pay anything, towards the discharge of the debts. It was alleged by the petitioning creditor that the sale by the debtor of his properties was with intent to defeat and delay his creditors. The debtor denied this act of insolvency. He asserted that the sale effected by him was bona fide. He said that out of the proceeds of sale, he had discharged certain debts to an extent of Rs. 8000 and the balance was utilised for conducting the marriage of his two sons, for 'seers' or presents to his daughter and for digging a well. The debtor also submitt
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