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A.m.v. Avanashi Chetti v. Muthukaruppan Chetti And Others

A.m.v. Avanashi Chetti v. Muthukaruppan Chetti And Others

(High Court Of Judicature At Madras)

Civil Miscellaneous Appeal No. 107 & 108 Of 1917 | 10-10-1917

[1] The only power of the District Judge to interfere judicially with the contract of sale entered into by the Receiver is under Section 22 of the Provincial Insolvency Act. No application was made under that section to the District Court within 21 days of the contract of sale and hence the District Judge had no power to set aside the contract of sale in a judicial proceeding.

[2] The respondent, in filing a petition under Order XXI, Rule 90 of the Code of Civil Procedure, wholly misconceived his remedy.

[3] The District Judge might have the powers of supervision over the Receiver and give directions to the Receiver not to complete a contract of sale in exercise of such powers of supervision, but that is not what he has done in this case. He has held that an application under Order XXI, Rule 90 of the Code of Civil Procedure, could be entertained by him in respect of a contract of sale concluded by the Receiver and has passed an order purporting to be passed under that provision of the Civil Procedure Code.

[4] The order was, therefore, passed without jurisdiction and is set aside. As this objection seems not to have been taken before the District Judge, there will be no order as to costs throughout.

Advocate List
  • For the Appellant S.T. Srinivasagopalachariar, Advocate. For the Respondents K. Bhashyam Aiyangar, Advocate.
Bench
  • HON'BLE MR. JUSTICE SADASIVA AIYAR
  • HON'BLE MR. JUSTICE BAKEWELL
Eq Citations
  • 1918 MWN 345
  • 44 IND. CAS. 885
  • AIR 1918 MAD 186 1
  • LQ/MadHC/1917/285
Head Note

Civil Procedure Code, 1908 — Or. XXI R. 90 — Insolvency — Receiver — Contract of sale entered into by Receiver — Cancellation of — No application under S. 22 of Provincial Insolvency Act, 1920 — Held, District Judge had no power to set aside contract of sale in a judicial proceeding