In Re: T.N. Panchapakesa Aiyar, an insolvent

Madras High Court 21 Jul 1941 (1941) 07 MAD CK 0005
Bench: Division Bench
Acts Referenced

Judgement Snapshot

Hon'ble Bench

Krishnaswamy Aiyangar, J

Acts Referred
  • Presidency Towns Insolvency Act, 1909 - Section 31

Judgement Text

Translate:

Krishnaswamy Aiyangar, J.@mdashPrayer (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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