1976 Supreme(All) 257
K.N.SETH
Madan Kumar – Appellant
Versus
Hari Narain Agrawal – Respondent
Advocates:
B.N. Agrawal, for the Appellants; S.N. Verma, for Respondents.
JUDGMENT :- These two appeals arise out of insolvency proceedings initiated by Vishnu Narain who made an application to the Insolvency Judge on 9-8-1966, for declaring him insolvent. The court by its order dated 15-1-1968 declared him insolvent. Respondents Nos. 1 to 5 in these appeals made applications under Section 4 of the Provincial Insolvency Act alleging that the disputed house and the shop were the assets of the insolvent and the transactions relating to them were sham and fictitious and hence void. It was alleged that on 16-4-1963 Vishnu Narain executed a gift deed in favour of his minor sons relating to the house in question. The mother of the minors, acting as their guardian, executed a sale deed dated 7-9-1966 in favour of Madan Kumar, appellant in S. A. F. O. No. 1 of 1973 Vishnu Narain executed a sale deed in favour of his brother-in-law Hari Krishna, appellant in S. A. F. O. No. 2 of 1973, on 27-9-1965 covering the shop in question. According to the respondent-creditors both these transactions were entered into with a view to defeat the claims of the creditors. They prayed that the gift dead dated 16-4-1963 and the two sale deeds be declared null and void. It was alle
Click Here to Read the rest of this document