Badri Das and Others vs Sheo Nath Singh

Chamier, J.—The applicants obtained a decree against the respondent, Sheo Nath, in the Court of Small Causes, in execution of which they brought certain property to sale on July 16th, 1914. An order was made that the proceeds of the sale should be paid to the decree-holders, less'' the costs of the sale. One month before this the judgment-debtor had applied to be declared insolvent, and an interim Receiver had been appointed u/s 13 of the Provincial Insolvency Act. On July 18th, that is, two days after the sale, the interim Receiver made a report to the Court on which an order was passed that the proceeds of the sale were not to be paid to the decree-holders, and a few days later the Court ordered that the money should be given back to the purchasers of the property and that the sale should be set aside. This is the order against which the present application is directed. The case is covered by the decision of this Court in Sri Chand v. Murari Lal 16 Ind. Cas. 183 : 10 A.L.J. 252 : 34 A. 628. The sale proceeds were realized before the judgment-debtor was adjudicated insolvent. Therefore, the Receiver had no claim to them. I am informed that the judgment-debtor has not up to date been adjudicated insolvent. However that may be, he had not been adjudicated insolvent when the proceeds of the sale were realized. I allow this application and set aside the order of the Court below. The applicants will get their costs from the respondent, judgment-debtor.