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1936 Supreme(Mad) 485

IN THE HIGH COURT OF MADRAS
Venkataramana Rao, J.
Haji Abdul Kuthus Sahib and Ors.
Versus
Inayathulla Sahib and Ors.
Decided On : 14.12.1936

The main legal point established in the judgment is that an order of discharge under the Provincial Insolvency Act does not completely extinguish the debt, and the property can still be liable for attachment and sale in execution of a decree.

Headnote:

Provincial Insolvency Act - Execution of Decree - Section 44(2) - Section 51 - Summary of Acts and Sections: The court discussed the implications of an order of discharge under Section 44(2) of the Provincial Insolvency Act, which releases the insolvent from all provable debts, and the effect of insolvency on the execution of a decree under Section 51. The court held that the debt is not destroyed altogether by the release and that the property is liable to be attached for the decree debt.

Fact of the Case:

The case involved the execution of a money decree obtained by the plaintiff against the defendants. The property in question was subject to attachment before judgment, and subsequent insolvency proceedings were initiated by defendant 1.

Finding of the Court:

The court found that the property was liable to be attached for the decree debt, despite the order of discharge in the insolvency proceedings, and dismissed the second appeal with costs.

Issues: The issues involved the validity of the execution of the decree in light of the insolvency proceedings and the order of discharge, as well as the rights of the parties involved in the attachment and subsequent transfer of the property.

Ratio Decidendi: The court held that the order of discharge under Section 44(2) of the Provincial Insolvency Act does not destroy the debt altogether and that the property is still liable to be attached for the decree debt, especially when the property had been held to be subject to the decree-holder's claim in previous litigation.

Final Decision: The second appeal was dismissed, and costs were awarded to the respondents.

JUDGMENT

Venkataramana Rao, J.

1. This civil miscellaneous second appeal arises out of an order of the learned District Judge of North Arcot confirming an order of the learned District Munsif of Vellore allowing execution of a decree in O.S. No. 86 of 1923 on the file of the said District Munsifs Court. It was a money decree obtained by one Habibulla Sahib against defendants 1 to 4 in the suit on 22nd November 1923. Subsequent to the institution of the suit and before obtaining a decree, an application for attachment before judgment of a house belonging to defendant 1 was made and an attachment thereof obtained on 21st February 1923. The wife of defendant 1, one Maimoona Bi, preferred a claim to the said property on the ground that it was sold to her on 12th February 1923.

2. The plaintiff decree-holder resisted the claim on the ground that it was a fraudulent transaction. The claim was disallowed on 24th July 1923. The said Maimoona Bi filed O.S. No. 670 of 1924 on 25th July 1924 to set aside the order on the claim petition, but the said suit was dismissed for default on 6th July 1925 and the claim order had thus become final. An execution petition was filed on 12th July 1926, to execute the said decree by arrest of defendant 1, but it appears to have been dismissed for non-payment of batta. Subsequent to this, in 1927, an application seems to have been made by defendant 1 to adjudicate him an insolvent, and he was accordingly adjudicated. There was an order of discharge passed in the said insolvency proceeding on 6th February 192,8. It transpires that the house which was under attachment was not reduced to possession by the Official Receiver, nor does he appear to have taken any proceedings in respect thereof. The decree-holder died, and the present application is made by his legal representatives to have the said property attached and sold in realization of the decree debt. There seems to have been a subsequent litigation to which the decree-holder in the said O.S. No. 86 of 1923 was not a party, in and by which it was established that the house belonged to the wife, the said Maimoona Bi, and not to defendant 1 (Judgment in S.A. No. 8 of 1931 dated 14th October 1932, Ex. 3). The said Maimoona Bi died later. Subsequent to her death, defendant 1 as her heir settled his share in favour of one Kalik Sahib on 27th December 1932. After the present execution application was filed, defendants 2 and 3 appear to have conveyed the shares they inherited also in favour of their brother, Kalik Sahib, by two deeds dated 25th August and 24th October 1933, and Kalik Sahib having died, the whole property is now vested in defendant 1. He resists the execution application on two grounds, namely (1) that it is barred by limitation, and (2) that by reason of the order of discharge this property is not liable to be proceeded against in execution of a decree against him. In regard to the first point, both the Courts have concurrently found against him and this finding is not challenged before me.

3. The remaining question is whether this property is not liable to be proceeded against by virtue of the order of discharge. The learned District Munsif did not deal with this contention on the ground that the order of discharge was not filed before him. The learned District Judge refused to admit the said order in appeal and therefore did. not deal with the contention. Mr. K. Section Krishnaswamy Iyengar made an application for the admission of the said order in this appeal. This application was opposed by the respondents. Their learned counsel however submitted that if I should permit the order to go in, he should be allowed to raise the question that the order of discharge would not preclude him from attaching and selling the said property by reason of the execution proceedings already had and the order on the claim petition and the dismissal of the suit O.S. No. 670 of 1924 and he should be allowed to file documents relating thereto. In the interests of






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