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Devarinti Dasi Reddi Annaji Chinnappa Reddi and ors. Vs. Dasari Venkobayya - Court Judgment

LegalCrystal Citation
SubjectCivil
CourtChennai
Decided On
Reported inAIR1938Mad489
AppellantDevarinti Dasi Reddi Annaji Chinnappa Reddi and ors.
RespondentDasari Venkobayya
Excerpt:
- - the creditor need do no more than prove his right to present the petition and the alleged act of insolvency and then adjudication must follow unless the court is satisfied by the debtor that he is satisfied to pay his debts (section 25 (1) provincial insolvency act). this appeal is accordingly allowed;1. the learned district judge, was in error in holding that the creditor should prove the debtor's inability to pay his debts. the creditor need do no more than prove his right to present the petition and the alleged act of insolvency and then adjudication must follow unless the court is satisfied by the debtor that he is satisfied to pay his debts (section 25 (1) provincial insolvency act). this appeal is accordingly allowed; the order of the learned district judge is set aside and the insolvency petition restored to file for disposal according to law. the appellants will recover the costs from the estate.
Judgment:

1. The learned District Judge, was in error in holding that the creditor should prove the debtor's inability to pay his debts. The creditor need do no more than prove his right to present the petition and the alleged act of insolvency and then adjudication must follow unless the Court is satisfied by the debtor that he is satisfied to pay his debts (Section 25 (1) Provincial Insolvency Act). This appeal is accordingly allowed; the order of the learned District Judge is set aside and the insolvency petition restored to file for disposal according to law. The appellants will recover the costs from the estate.


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