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In Re: Hansraj Malji and Narandas Dayal; Insolvents; Dewar and Co. - Court Judgment

LegalCrystal Citation
SubjectCivil
CourtMumbai
Decided On
Judge
Reported in(1883)ILR7Bom411
AppellantIn Re: Hansraj Malji and Narandas Dayal; Insolvents; Dewar and Co.
Excerpt:
indian insolvent act (stat. 11 & 12 vict., clause 21) - infant trader--withdrawal of petition by infant--rule 22, rules and orders, bombay. - .....himself out as a person of full age nor, because fie did not give out to the world what his real age was, can he be considered to have acted fraudulently. such fraud must be strictly proved. there is, besides, no evidence of his having taken any active part in the firm's business, nor of any express representation by him that he was of full age; and the filing of his petition cannot alter his status. he must, under all these circumstances, be allowed to withdraw from the insolvency proceedings.
Judgment:

Scott, J.

1. Upon the evidence it appears sufficiently established that Narandas was, at the date of filing his joint petition, a minor under the age of eighteen years; that he had brought some capital into the firm, but had taken no active part in the business, and that he had made no express representation to any constituent or creditor of the firm that he was of full age. Such being the facts proved, the law laid down in Ex p. Jones (1) applies. That case is based on the general rule that infants being incapable of contracting, except for necessaries, cannot be adjudged insolvent, and the only exception allowed to the rule is where there has been an express representation amounting to fraud. Narandas is not liable to be made a bankrupt, though, no doubt, he has traded, and even brought some moneys of his own into the trade. From the mere fact of his trading he cannot be taken to have held himself out as a person of full age nor, because fie did not give out to the world what his real age was, can he be considered to have acted fraudulently. Such fraud must be strictly proved. There is, besides, no evidence of his having taken any active part in the firm's business, nor of any express representation by him that he was of full age; and the filing of his petition cannot alter his status. He must, under all these circumstances, be allowed to withdraw from the insolvency proceedings.


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