Freudenberg V. Weerapass Et Al.,

Present: Schneider and Garvin JJ.

FREUDENBERG v. WEERAPASS et al.,

25-DJC (Inty.) Colombo, 3592

    Insolvency Proof of judgment-debt-Counterclaim bit insolvent-Set off-Ordinance No. 7 of 2553, ss: 99 and'109.

Proof of a judgement doubt in insolvency proceedings does not deprive the judgment-creditor of the right to sot off, as against the debt, a sum decreed to to insolvent by way of counterclaim in l ho action.

APPEAL from an order of the District Judge of Colombo. In action No. 16,521 of the District Court of Colombo, one Weerapass sued the appellant and another person to recover. damages for wrongful dismissal. The appellant counterclaimed a sum of money due on certain promissory notes. Weerapass' claim was dismissed and judgment was entered for the appellant for a sum of Rs. 4,281 o 66. Weerapass was adjudicated an insolvent in the present action and the appellant proved his claim in the insolvency proceedings. Eventually, as a result of an appeal and a second trial, Weerapass got judgment against the appellant for a sum of Rs. 6,280 as damages. That sum and the sum payable to the appellant were set off against each

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