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A. V. Bashyam Reddi (1St Petitioner). v. Somasundaram Chetti And Others S (S).

Madras High Court
Feb 16, 1916
Important Paras
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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. Sect. 47 of the Provincial Insolvency Act, 1907, or Sect. 151 of the Code of Civil Procedure, 1908, cannot be properly invoked in support of that order.

The discretion given under Sect. 13, cl. (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 the 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.

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.

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

Appeal dismissed.