This appeal presents a problem, the solution of which depends upon the legal effect of the annulment of an adjudication in an insolvency.

The material facts may be stated. Palani Goundan and his son Chinnathambi Goundan were adjudicated insolvents by the Subordinate Judge of Coimbatore on the 26th September, 1928. In the year 1935 their adjudication was annulled by the Subordinate Judge under section 35 of the Provincial Insolvency Act On appeal the District Judge reversed that decision and set aside the order of annulment. The High Court, in a revision petition, by an order dated 15th November, 1939, restored the order of the Subordinate Judge annulling the adjudication After annulment the High Court directed the assets of the insolvents to be handed over to them, except a sum of Rs. 3,600 which the insolvent paid fraudulently to one Periakaruppa Chettiar. In regard to this, the same was vested in the Official Receiver for distribution among the creditors under section 37 of Provincial Insolvency Act.

The petitioner, Arunachalam Chettiar, obtained a decree against Palani Goundan, Chinnathambi Goundan and the respondent, in O.S.No.109 of 1924. That suit had a prolonged existence on a

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