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1940 Supreme(Mad) 272

IN THE HIGH COURT OF MADRAS
Burn, J.
The Official Receiver
Versus
Amara Seshayya and Ors.
Decided On : 23.08.1940

The main legal point established in the judgment is that the Official Receiver's representation of the judgment-debtor and the jurisdiction of the Subordinate Judge to attach the share of the minor sons in an execution proceeding were key considerations in reaching the decision.

Headnote:

Official Receiver - Execution Proceedings - Civil Procedure Code, Order 21, Rule 58 - The court discussed the position of the Official Receiver in insolvency cases and the circumstances under which he can be considered a representative of the judgment-debtor. The court also considered the jurisdiction of the Subordinate Judge to attach the sum representing the share of the insolvent's minor sons and the validity of the decree-holder's claim against the minor sons' interest in the joint family property.

Fact of the Case:

The appeal and revision petition were brought against the order passed by the Subordinate Judge in an execution proceeding. The decree-holder sought execution against the minor sons of the judgment-debtor through the Official Receiver. The Official Receiver and the minor sons opposed the application, but the Subordinate Judge overruled their objections.

Finding of the Court:

The court found that the Official Receiver was not a representative of any of the parties to the suit and therefore had no right of appeal. The court also held that the Subordinate Judge had no jurisdiction to attach the sum representing the share of the insolvent's minor sons.

Issues: The issues involved the representation of the judgment-debtor by the Official Receiver, the jurisdiction of the Subordinate Judge to attach the sum representing the share of the minor sons, and the validity of the decree-holder's claim against the minor sons' interest in the joint family property.

Ratio Decidendi: The court held that the Official Receiver was not a representative of any of the parties to the suit and therefore had no right of appeal. Additionally, the court found that the Subordinate Judge had no jurisdiction to attach the sum representing the share of the insolvent's minor sons.

Final Decision: The court dismissed the appeal and the revision petition, set aside the order of attachment of the sum representing the share of the minor sons, and allowed the petitioner to recover costs from the plaintiff in the original suit.

JUDGMENT

Burn, J.

1. This appeal and this revision petition are brought against the order passed by the learned Subordinate Judge of Guntur in E.P. No. 84 of 1937 in O.S. No. 34 of 1931. The E.P. Was dated 1st March, 1937. The suit had been decreed on the 14th December, 1931, against ninth defendant for a sum of Rs. 23,741-1-2 with interest and costs. It was alleged in the E.P. that certain sums had been recovered in execution in 1936 and 1937 and that an amount of Rs. 30,582 plus further interest and costs was still due. The prayer in the E.P. was for execution against five defendants impleaded in the E.P. as supplemental defendants 10 to 14. The supplemental tenth defendant is the Official Receiver of Guntur and defendants 11 to 14 are said to be the minor undivided sons of K. Venkatasubba Rao the eighth defendant in the suit. K. Venkatasubba Rao had been adjudicated insolvent in I.P. No. 74 of 1931 and certain items of the joint family property had been sold by the Official Receiver for a sum of Rs. 6,555. The decree-holder alleged that he had attached the properties of the eighth" defendant before judgment in O.S. No. 34 of 1931. He said that he desired attachment by means of a prohibitory order of a sum of Rs. 5,244 representing the 4/5th share of the supplemental defendants 11 to 14 (the minor sons of the eighth defendant) of the sum of Rs. 6,555. He prayed that the Official Receiver, the tenth defendant might be ordered to deposit this amount in Court so that it might be paid to him to the credit of this decree in O.S. No. 34. He prayed also for the issue of a sale notice regarding the remaining joint family properties which had been attached and for payment of 4/5th of the sale proceeds of such items to him. The Official Receiver opposed this application and the minor sons also opposed it. The learned Subordinate Judge overruled these objections and ordered that the preliminary attachment of the sum of Rs. 5,244 should be made absolute. Hence this appeal and the revision petition which are filed by the Official Receiver.

2. Mr. Govindarajachari on behalf of the respondent decree-holder raised a preliminary objection to the maintainability ability of the appeal and after hearing his arguments and the arguments of Mr. P. Satyaharayana Rao for the appellant we find ourselves obliged to accept the preliminary objection. Mr. Govindarajacharis contention was that the Official Receiver did not in this proceeding represent any of the parties to the decree and that consequently no appeal would lie from the order passed by the learned Subordinate Judge. Mr. Satyanarayana Rao attempted to show that the Official Receiver could be considered to be a representative of the sons of the insolvent eighth defendant. It has been pointed out by Rankin, C.J., in the case Mohitosh Dutta v. Rai Satish Chandra Chaudhuri Bahadur 35 C.W.N. 971, that no hard and fast rule can be Laid down regarding the position of the Receiver in insolvency in such a case as this. The learned Chief Justice observes:

It appears to me that any general statement to the effect that a Receiver is or is not a representative for the purposes of Section 47 of the Code is necessarily misleading. It all depends on the purpose and nature of the application made by the Receiver whether he is a representative of the judgment-debtor or not. For some purposes he would be entitled as representing the judgment-debtor to litigate matters under Section 47 of the Code; but where he comes to the executing Court for the purpose of saying that as the judgment-debtors property now belongs to the Receiver the Court cannot sell for the judgment-debtors debt that which is the property of. another person because it has vested in the Receiver for the benefit of the creditors, then, for that purpose the Receiver is not, in my judgment, a representative of the judgment-debtor. The Receiver in such a case, if he is not acting under Section 52 of the Provincial Insolvency Act but acting under the us








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