( 1 ) THE appellant Pirthi has been adjudged insolvent. The respondent Budh Singh applied to the court for adjudging Pirthi an insolvent on the ground that Pirthi has taken a loan on pronote dated 10-1-1971 for Rs. 16,000/- bearing interest at the rate of 12 per cent per annum. The amount due, according to Budh Singh, was Rs 20,025/ -. It was asserted that the appellant had sold a major portion of his Bhumi-dhari property on 20-2-1973 in favour of Rura and Tilka sons of Mohan Lal and Inder Singh son of Daryao with an intent to delay and defeat the creditor. It was asserted that this sale deed had been effected by Pirthi after the filing of the Suit No. 65 of 1973 by the creditor in the Court of the Civil Judge, Muzaffar Nagar on 16-2-1973 for the recovery of the amount of the loan.

( 2 ) THE appellant contested the petition. He denied taking of loan of Rs. 16,000/- as alleged by the creditor. He also asserted that the sale deed had been effected in pursuance of an agreement of sale executed by him prior to the institution of the suit by the petitioner against him in the Court of the Civil Judge, Muzaffarnagar. The appellant further asserted that he possessed agricul