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1926 Supreme(Mad) 198

IN THE HIGH COURT OF MARAS
W W Phillips, M Nair
Subramania Iyer, Minor, By Next
Versus
T.V. Krishna Iyer And Anr.
Decided On : 22 March, 1926

The central legal point established in the judgment is the interpretation of 'property' and 'disposing power' under the Presidency Towns Insolvency Act and the Provincial Insolvency Act, and its implications on the authority of the Official Receiver to sell the interests of the insolvent's sons in the family property.

Headnote:

Official Receiver - Power to sell interest of insolvent's son in family property - Presidency Towns Insolvency Act, Provincial Insolvency Act - Sections 2, 17, 28, 52 - The court discussed the power of the Official Receiver to sell the interest of the insolvent's son in the family property, referencing the relevant sections of the Presidency Towns Insolvency Act and the Provincial Insolvency Act. The court considered the interpretation of 'property' and 'disposing power' under the Acts and their implications on the Official Receiver's authority to deal with the sons' shares in the family estate. The court also examined previous decisions and the impact of a Privy Council judgment on the matter.

Fact of the Case:

The court considered the power of the Official Receiver to sell the interest of the insolvent's son in the family property under the Presidency Towns Insolvency Act and the Provincial Insolvency Act, referencing relevant sections and previous decisions.

Finding of the Court:

The court found that the power of the Official Receiver to sell the sons' interests in the family property was upheld, based on the interpretation of 'property' and 'disposing power' under the Acts, as well as previous decisions and the impact of a Privy Council judgment.

Issues: Interpretation of 'property' and 'disposing power' under the Presidency Towns Insolvency Act and the Provincial Insolvency Act, authority of the Official Receiver to deal with sons' shares in the family estate.

Ratio Decidendi: The court held that the power of the Official Receiver to sell the interests of the insolvent's sons in the family property was supported by the interpretation of 'property' and 'disposing power' under the Acts, as well as previous decisions and the impact of a Privy Council judgment.

Final Decision: The court upheld the sale by the Official Receiver and dismissed the appeal with costs.

JUDGMENT

William Watkins Phillips, J.

1. The question we have to consider is whether the Official Receiver of an insolvents estate has power to sell the interest of the insolvents son in the family property, The question has been already decided in this Court in Official Assignee of Madras v. Ramachandra Aiyar 68 Ind. Cas. 898 : 46 M. 54 : 16 L.W. 559; (1922) M.W.N. 653 : 43 M.L.J. 569; A.I.R. 1923 Mad. 55 where it was held that although the interest of the sons does not vest in the Official Assignee by reason of the adjudication it would be competent to the latter to deal with their shares if the debts of the insolvent were of such a nature as to be binding on their interests Again in Sankaranarayanam Pillai v. Rajamani 83 Ind. Cas. 196 : 47 M. 462 : 46 M.L.J. 314 : 34 M.L.I. 152; A.I.R. 1924 Mad. 550 : 20 L.W. 357 to which I was a party, it was held that the sale by the Official Receiver purporting to be of the whole of the family estate of the insolvent passed to the vendee the sons share also. It is now contended for the appellant that in view of the recent decision of the Privy Council in Sat Narain v. Behari Lal 84 Ind. Cas. 883 : 6 Lah. 1 : 47 M.L.J. 857 : 10 O. & A.L.R. 1332 : A.I.R. 1925 P.C. 18; (1925) M.W.N. 1 : 23 A.L.J. 85; L.R. 6 A. (P.C.) 1 : 24 P.L.R. 81 : 27 Bom. L.R. 135 : 21 L.W. 375 : 1 Lah. Cas. 500; I.O.W.N. 916 : 29 C.W.N. 797 : 52 I.A. 22 (P.C.) these cases require reconsideration. In this last case, which was under the Presidency Towns Insolvency Act, it was held that Section 2(e) did not include the sons interests in the family property when the father had been adjudged an insolvent and that the interests of the sons did not vest in the Official Assignee. Their Lordships remark that "it is certainly a startling proposition that the insolvency of one member of the family should of itself and immediately take from the other male members of the family their interests in the joint property." Inasmuch as Section 2 of the Act is only to apply unless there is something repugnant in the subject or context, it was held that the disposing power mentioned in Section 2(e) contemplates an absolute and unconditional power of disposal. They, therefore, held that under the definition of property in Section 2(e) the interests of the sons did not vest in the Official Assignee under Section 17. They, however, remark: "It may be that under the provisions of Section 52, or in some other way that property may in a proper case be made available for payment of the fathers just debts." This remark clearly indicates that their Lordships had no intention of overruling either of the two Madras decisions I have mentioned above. Although that decision was under the Presidency Towns Insolvency Act, it is hardly possible now to contend that it would not apply to the Provincial, Insolvency Act with which we are here concerned. The definition in Section 2(d) of the latter Act is identical with the definition in the former. Although, therefore, their Lordships refer in their argument to Section 52 of the Presidency Towns Insolvency Act, a section which is missing in the Provincial Insolvency Act, yet it must be taken that the two sections being identical must have the same meaning and that the disposing power in both must be an absolute disposing power, although the question whether a fathers right to enforce partition of the family property is an absolute power has not been considered. Apart, however, from Section 2 it appears to me that the question before us can be decided with reference to Section 28 under which the whole of the property of the insolvent shall vest in the Court on the making of an order of adjudication. Section 2 is not an exhaustive definition of property, and if this power of the father to sell his sons interests can be deemed to be property within the meaning of Section 28, then this power vests in the Court or in the Official Receiver, although the property over which the power had to be exercised does not so ves





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