Nizam Khan vs Hukam Chand, Creditor - 1941 Supreme(Lah) 122

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

1941 Supreme(Lah) 122

BECKETT
Nizam Khan – Appellant
Versus
Hukam Chand, Creditor – Respondent

JUDGMENT

Beckett, J. - The facts which give rise to the present petition for revision are as follows: Mehndi Khan, the principal respondent, was adjudicated an insolvent on 7th October 1936. This was done on a creditor's petition, alleging that Mehndi Khan had committed an act of insolvency by alienating an important portion of his property on 7th June 1935, a few days before the petition was presented. The application for adjudication was not opposed. The insolvent was directed to apply for discharge within one year. On 12th January 1937 the Official Receiver sought to carry out the main object of the proceedings by means of an application, in which it was asserted that the alienation in question amounted to a fraudulent preference of the creditors in whose favour it had been made, and the Court was requested to annul the transfer under Section 54, Provincial Insolvency Act, 1920. After this application had been put in, it appears that some of the creditors represented to the receiver that the transferees were not in fact creditors of the insolvent, but had been falsely shown as such for the purpose of giving a colourable appearance to the transaction, which was in reality a volunt

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