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Mir Shahamat Ali Vs. Rahim Bux and anr. - Court Judgment

LegalCrystal Citation
CourtAllahabad
Decided On
Judge
Reported in84Ind.Cas.1008
AppellantMir Shahamat Ali
RespondentRahim Bux and anr.
Excerpt:
insolvency - insolvent, decree against--receiver, whether bound. - .....receiver must enquire into all the debts when the estate is administered, and he will form his own judgment as to whether this alleged debt of rs. 75 is a genuine one or not, and if it turns out to be, as suggested, fictitious, no dividend will be payable in respect of it. the same observation applies to the debt of the appellant, although he has got a decree. a decree obtained against the judgment-debtor is not binding against the receiver in insolvency. there is always a possibility of its having been collusive between the parties' when the judgment-debtor has nothing in the world to bless himself with and does not care whether he has decrees for an unlimited amount against him or not. the appeal must be dismissed with costs, on the higher scale, if any.
Judgment:

1. There is nothing in this appeal, The Receiver must enquire into all the debts when the estate is administered, and he will form his own judgment as to whether this alleged debt of Rs. 75 is a genuine one or not, and if it turns out to be, as suggested, fictitious, no dividend will be payable in respect of it. The same observation applies to the debt of the appellant, although he has got a decree. A decree obtained against the judgment-debtor is not binding against the Receiver in insolvency. There is always a possibility of its having been collusive between the parties' when the judgment-debtor has nothing in the world to bless himself with and does not care whether he has decrees for an unlimited amount against him or not. The appeal must be dismissed with costs, on the higher scale, if any.


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