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In Re: T.N. Panchapakesa Aiyar, an Insolvent - Court Judgment

LegalCrystal Citation
SubjectCivil
CourtChennai
Decided On
Reported in(1941)2MLJ847
AppellantIn Re: T.N. Panchapakesa Aiyar, an Insolvent
Excerpt:
- .....advocate who purported to act for her proceeded upon a mistake of fact in making such a representation to the court. in these circumstances i hold that the payment of dividends to the other creditors cannot be held to have been duly made within the meaning of the expression in section 31 of the presidency towns insolvency act. the creditors who received dividends from the official assignee shall pay back into his hands such amount each as is necessary to make up the proper dividend payable to the applicant on the amount of her admitted claim. the creditors in the list herewith appended will pay to the official assignee the several sums set out against their names respectively making a total of rs. 932-1-9 which i understand will be sufficient to pay rs. 0-4-3 in the rupee to all the.....
Judgment:

Krishnaswamy Aiyangar, J.

1. Prayer (c) is the only outstanding matter to be dealt with. The applicant who has been found to be a creditor was denied participation in the dividend by reason of a fraud practised upon the Court by the insolvent. It was represented that the applicant had agreed to have her rights postponed to those of the other creditors and that she was a major at the time. It is clear that she was not a major at the time and there is reason to think that the learned advocate who purported to act for her proceeded upon a mistake of fact in making such a representation to the Court. In these circumstances I hold that the payment of dividends to the other creditors cannot be held to have been duly made within the meaning of the expression in Section 31 of the Presidency Towns Insolvency Act. The creditors who received dividends from the Official Assignee shall pay back into his hands such amount each as is necessary to make up the proper dividend payable to the applicant on the amount of her admitted claim. The creditors in the list herewith appended will pay to the Official Assignee the several sums set out against their names respectively making a total of Rs. 932-1-9 which I understand will be sufficient to pay Rs. 0-4-3 in the rupee to all the creditors including the applicant.


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