RAMAPRASADA RAO, RATNAVEL PANDIAN
Bandi Chalapathi Rao – Appellant
Versus
Official Assignee – Respondent
RAMAPRASADA RAO, J. (26-7-1977) :- When these two appeals were taken up, Mr. Sivaramakrishnaiah appearing for the appellant in O. S. A. No. 50 of 1973 as also Mr. Dolia in O. S. A. 75 of 1975 have raised a preliminary objection that the Judge sitting in insolvency ought not to have enquired into the Judge' s summons taken out by the Official Assignee under Section 7 of the Presidency Towns Insolvency Act and given a judgment on the merits. Their contention is that this is a case in which the appellant in each of these appeals did not admit the liability as set out in the report of the Official Assignee and as claimed by him in the Judge' s summons and at all material times there was a contest by the appellants regarding their liability to the claim made by the Official Assignee. Mr. Sivaramakrishniah arguing on the preliminary objection would say that the proviso to S. 7 of the Act having been introduced with a distinct purpose has a meaning and a significance to serve. He would invite our attention to the history of Ss. 7 and 36 of the Presidency Towns Insolvency Act and would contend that the Parliament was prompted to amend S. 36, Cls. 4 and 5 and introduce the proviso
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