This Civil Miscellaneous Second Appeal is against the judgment and decree of the District Judge, Guntur, dated 31st July, 1948, in C.M.A.No. 23 of 1948, and raises three important questions: (1) whether the Insolvency Court can order dividends paid on time-barred debts, expunged from the schedule, to be put back into Court; (2) whether the Official Receiver, like a full owner, can acknowledge and pay at his will and pleasure time-barred debts; and (3) whether a creditor authorised and directed by the Official Receiver can file a petition under section 50, Provincial Insolvency Act, in the Insolvency Court, to have debts incorrectly or improperly admitted expunged from the schedule and get a valid order.

C.M.A.No. 23 of 1948 was an appeal against the order of the Subordinate Judge, Guntur, dated 19th January, 1948, in I.A.No. 233 of 1947, in O.P.No. 54 of 1935, an application of the respondent, Venugopala Rao, a creditor of the insolvent in I.P.No. 54 of 1935, on the file of the Subordinate Judge, Guntur, to expunge two Khata debts amounting to Rs. 9,135 said to be due to the appellant, Subbamma, from one Seetharamamma, from the schedule of proved debts. The learned Subordi