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V. Shanmughavelayudham Pillai Vs. K.M.R.M. Ramanathan Chettiar and anr. - Court Judgment

LegalCrystal Citation
SubjectCivil
CourtChennai
Decided On
Reported in(1949)1MLJ194
AppellantV. Shanmughavelayudham Pillai
RespondentK.M.R.M. Ramanathan Chettiar and anr.
Excerpt:
.....of discharging the debt under section 10(2)(b) would follow. as the judgment-debtor had failed to establish the very first requirement of the section the debt is not discharged......court, coimbatore, was discharged under section 10, sub-section (2), clause (b) of the madras debt conciliation act. under the act the debt would be discharged for failure on the part of the creditor to submit the statement of the debts owed to him in compliance with the provisions of sub-section (1). sub-section (1) of section 10 contemplates the issue of a notice and service thereof calling upon every creditor to submit a statement of debts owed to him by the debtor with a view to effect a settlement. if after the receipt of such notice the creditor fails to file the statement as required by sub-section (1), under clause (b) of sub-section (2) the debt shall be deemed for all purposes and all occasions to have been duly discharged. the foundation, therefore, for the argument that.....
Judgment:

P.V. Rajamannar, C.J.

1. The only question that arises for consideration in this civi miscellaneous second appeal is whether the decree debt in O.S. No. 71 of 1929 on the file of the District Munsiff's Court, Coimbatore, was discharged under Section 10, Sub-section (2), Clause (b) of the Madras Debt Conciliation Act. Under the Act the debt would be discharged for failure on the part of the creditor to submit the statement of the debts owed to him in compliance with the provisions of Sub-section (1). Sub-section (1) of Section 10 contemplates the issue of a notice and service thereof calling upon every creditor to submit a statement of debts owed to him by the debtor with a view to effect a settlement. If after the receipt of such notice the creditor fails to file the statement as required by Sub-section (1), under Clause (b) of Sub-section (2) the debt shall be deemed for all purposes and all occasions to have been duly discharged. The foundation, therefore, for the argument that the debt must be deemed to have been discharged within the meaning of the section is the service of notice contemplated by Section 10(1) of the Act. In the present case the concurrent finding of both the Courts below is that there is no evidence that a notice of the kind contemplated by Section 10(1) of the Act was served or even issued to the decree-holder K.M.R. M. Ramanathan Chetriar. An attempt was made to connect a notice issued to one Ramanathan Chettiar with different initials but that attempt signally failed. It was then urged that the decree-holder had notice of the filing of the petition under the Debt Conciliation Act as there was an application to stay execution of the decree under Section 25 of the Act but that notice was merely a notice of proceedings and not a notice calling upon the creditor to file a statement of the debts due to him from the debtor within the meaning of Section 10(1) of the Act. It is not enough to prove that the creditor had knowledge of the proceedings under the Debt Conciliation Act. The debtor must go further and prove the failure to comply with the requirements of the statute as laid down in Section 10(1). It is only then that the penal consequence of discharging the debt under Section 10(2)(b) would follow. As the judgment-debtor had failed to establish the very first requirement of the section the debt is not discharged.

2. The decision of the Court below is correct. The civil miscellaneous second appeal is dismissed with costs.

3. No leave.


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