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A.V. Bashyam Reddi Vs. Somasundaram Chetti and ors. - Court Judgment

LegalCrystal Citation
Decided On
Reported in32Ind.Cas.897
AppellantA.V. Bashyam Reddi
RespondentSomasundaram Chetti and ors.
provincial insolvency act (iii of 1907), sections 13(2) and 47 - interim receiver, when to be appointed--cancellation of order in favour of a party without notice, if illegal--execution sale in other courts, whether can be stayed--civil procedure code (act v of 1908), section 151. - - 1. the order of the district judge dated 21st october 1915, so far as it stays an execution sale going on in another court, was clearly passed without jurisdiction......but under the circumstances without.....

1. The order of the District Judge dated 21st October 1915, so far as it stays an execution sale going on in another Court, was clearly passed without jurisdiction. Section 47 of the Provincial Insolvency Act, 1907, or Section 151 of the Code of Civil Procedure, 1903, cannot be properly invoked in support of that order.

2. The discretion given under Section 13, Clause (2), of the Provincial Insolvency Act to the Insolvency Court to appoint an ad interim Receiver should, ordinarily, be exercised only in cases where the property of alleged absconding insolvent has to be preserved from destruction or disappearance, and not in order to vest in an ad interim Receiver the properties attached by other Courts in execution.

3. The District Judge again acted irregularly in vacating his first order without notice to the appellant and we are unable to see that the appellant practised any deception on the learned District Judge (as stated in the second order) when the appellant obtained the first order.

4. However, as the first order cannot be supported on the merits, we shall dismiss the appeal, but under the circumstances without costs.

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