High Courts(1938) 01 MAD CK 0042

Devarinti Dasi Reddi Annaji Chinnappa Reddi and Others vs Dasari Venkobayya

Madras High Court · Decided on 20 January 1938 · Citation: AIR 1938 Mad 489 : (1938) 47 LW 772

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Judgment

1 paragraphs · 105 words
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.