The Insolvency Court has the exclusive jurisdiction to deal with claims against persons holding the insolvent's property adversely and has the power to direct delivery of assets to the Receiver.

Oldfield, J.

1. The lower Courts order against the Official Receiver, in Appeal against order No. 128 of 1919, was passed firstly on the short ground that Sections 16, 34, 35 of the Provincial Insolvency Act (III of 1907) specified in the heading of the petition are not "petitioning sections", the meaning being apparently that the proper remedy was not by petition under that Act, but by suit or otherwise under the direct provisions of the Code of Civil Procedure and the appeal is resisted here firstly on that account.

2. The facts are that, on 23rd September 1914, first to third respondents obtained a compromise decree, Exhibit 1, in the Court of the District Munsif of Ambasamudram against four persons, who were adjudicated insolvents in the lower Court on 23rd March 1917. On 28th June 1918 certain properties of the insolvents were sold in execution of this decree by the District Munsif and purchased by the fourth respondent, after one of the insolvents and the Official Receiver had in circumstances not yet investigated taken objection to the sale proceedings. In the present proceedings the Official Receiver has moved the lower Court, as the Court dealing with the insolvency, to set aside the sale or in the alternative to direct a refund by first to third respondents of their realization in execution. It is not clear whether delivery to fourth respondent has taken place. But there is a further prayer for such other relief as the circumstances may demand, which would cover, if necessary, an order for the return of the property. On these facts, the contentions, as advanced in paragraph 16 of first respondents counter-petition and in argument before us, are that only the Court which held the sale, can set it aside; that the Insolvency Court has no right to interfere with the proceedings in execution elsewhere; and that the Official Receiver should, as the lower Court held, proceed by suit or otherwise under the Code.

3. The general question thus raised is whether the Court dealing with an insolvency under the Provincial Insolvency Act has either an exclusive jurisdiction or one concurrent with that of the ordinary Courts to deal, for the purpose of the administration of the insolvents estate, with claims against persons holding it adversely to him, whether they have arisen from purchase at Court sale or otherwise. Before dealing with the provisions of the Act, I observe that such an exclusive jurisdiction is well recognized elsewhere in insolvency systems, which are of longer standing than the Provincial Act, and which are usually referred to in its construction. Reference may be made on this point to the decisions collected under Section 105 of the English Bankruptcy Act, 1914, at page 375, Williams Bankruptcy Practice, 11th Edition, and to Section 7 of the Presidency Insolvency Act (III of 1909) of which the material portion was reproduced from the English Act in force at its date; and it is significant that, although there is no reason for presuming any intention to change the law, the legislature has included a similar provision, as Section 4 in the Provincial Insolvency Act (V of 1920), which is now in force, The mention above of concurrent jurisdiction is based solely on Naginlal Chunilal v. The Official Assignee (1911) I.L.R., 35 Bom., 473 a case under the Presidency Act, which does not appear to have been followed in any other High Court, which makes no reference to Section 8(2)(o) as affording a remedy in the Insolvency Court and deals with Section 7 with very little regard to English authority. The decision in these circumstances is of doubtful authority, and in any case, as it recognizes only a concurrent jurisdiction, it in no degree assists respondents.

4. To turn to the Provincial Act, it is material first that, as appears from its preamble, its comprehensive character, and the repeal by it of the existing Insolvency Law, Sections 341 and 844 to 360-A of the Code in force at its date, it is a special law and it