DEEN v. ALAGAPPA CHETTY
NLR31V188
1929. Present : Fisher C.J.
and Drieberg J.
DEEN v. ALAGAPPA CHETTY.
104-D. C. Colombo, 3,798.
Insolvency-Opposition to
certificate-Failure to give notice-Adjournment of meeting-Ordinance No. 7 of
1853, s. 124.
In insolvency proceedings a District Court has power to adjourn a sitting
held for the purpose of granting a certificate, in order to enable a creditor to
be heard, who desired to oppose the certificate but had failed to give the
statutory notice.
APPEAL
from an order of the District Judge of Colombo.
The appellant having been adjudged insolvent, a certificate meeting was fixed,
when the respondent appeared on the appointed day to oppose the granting of the
certificate. The appellant objected to the respondent being heard on the ground
that the latter had failed to conform to the requirement of the Ordinance with
regard to the notice of opposition. The learned District Judge adjourned the
certificate meeting to allow the opposing creditor or any other creditor to give
notice of opposition.
Weerasooria, for insolvent, appellant.-Section
124 of the 1929. Insolvency Ordinance (No. 7 of 1853) requires that a creditor
who desires to oppose the certificate must give three clear days' notice to the
Secretary of the Court. Notice handed over to a clerk is not due notice,
and even the clerk says he saw the notice among his papers for the first time
only on the day of the certificate meeting. The District Judge has not held
whether the notice was given on the day it is alleged to have been given or not.
He has no power to adjourn the certificate meeting to cure the non-compliance of
the provisions of the section. The adjourned date must be taken, to refer back
to the original date fixed for such meeting. Counsel cited Silva v. Siddambaram
Chetty [1 4 C. W. R. 217] .
Rajapakse, for opposing creditor-respondent.-The District Judge has power under
section 124, ex mero motu, to ask for assistance from a creditor with regard to
the consideration of objections to the grant of a certificate, whether such
creditor has given notice or not. Here the Judge stopped the evidence and
adjourned the meeting. In interpreting section 124 grounds of public policy must
be remembered, and the insolvent's conformity to the provisions of the
Ordinance. An opposing creditor to some extent represents the public. The notice
has to be given to the Secretary, not do the insolvent. The Judge has discretion
to adjourn the sitting for the purpose of giving even a creditor, who has not
given due notice, an opportunity of giving the required notice. (Ex parte Woods
[ 2 20 L. J. Chanc. 619.]; Archbold (1856 ed.), pp. 402-403.) The passage in 4
C. W. R. 217 is obiter dictum.
August 22, 1929. FISHER C.J.-
This appeal arises under the following circumstances: The appellant having been
adjudged insolvent, the certificate meeting under section 124 of the Insolvency
Ordinance, No. 7 of 1853, was appointed to be held on March 26, 1929. The
respondent, who wished to oppose the granting of the certificate, took certain
steps to comply with the provision of the section which requires an opposing
creditor to give " to the Secretary of the Court three clear days' notice in
writing of his intention to oppose," and appeared on the appointed day to oppose
the granting of the certificate. The appellant objected to his being heard on
the ground that the requirement of the section with regard to notice had not
been complied with. The learned Judge, without specifically deciding the
question whether due notice had been given or not, and after having heard some
evidence, made order as follows: " In view of the facts I think that the fairest
order I can make is to adjourn the certificate meeting for June 11. The opposing
creditor who has given notice, or any other creditor, will be allowed to give
notice
of opposition in the usual way. I do not think
it fair to the Court that I should not have