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1977 Supreme(Mad) 365

P.GOVINDAN NAIR, VARADARAJAN
Gopilal J. Nichani – Appellant
Versus
Trac Industries and Components Ltd. Madras – Respondent


Advocates:
G. Ramaswami, P. Siveramakrishnayya and T.K. Seshadri, for Appellant; M.R. Krishna Iyer, M.R. Narayanaswami for C. Harikrishnan, Bhaskara Shankar, S. Raghavan and R. Mahesh, for Respondents.

Judgement

P. GOVINDAN NAIR, C. J. (1-8-1977) :- We propose to dispose of these appeals by a common judgment, because the main questions involved in these appeals centre round the interpretation we have to place on Sec. 4 (b) of the Tamil Nadu Relief Undertaking (Special Provisions) Act 1969 (Tamil Nadu Act 21 of 1969) (hereinafter referred to as the Act), and S. 128 of the Indian Contract Act, 1872.

2. The appeal in O. S. A. 48 of 1975 is from the order of Sethuraman J. in Appln. No. 1849 of 1973 in C. S. 155 of 1973, on the file of this Court dismissing the suit filed against a relief undertaking as defined in S. 2 (4) of the Act and against the sureties who guaranteed the debt due from the relief undertaking.

3. O. S. A. No. 68 of 1976 is an appeal by the guarantor of a debt due from a relief undertaking against whom insolvency proceedings were commenced to adjudge him as insolvent by the creditor. Suryamurthy J. held that the petitioning creditor seeking to adjudge the guarantor is not seeking to recover a debt and therefore S. 4 (b) of the Act has no application. The learned Judge on the preliminary point raised by the guarantor held that the insolvency petition taken against him























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