Ghosh Industries vs Ex Parte: U.C.O. Bank

Ajoy Nath Ray, J.—This is an application in insolvency made under the Presidency Town, Insolvency Act.

Regarding non-payment of decretal dues and the acts of insolvency no disputes have been or can be raised on facts.

The only point that was taken in opposition was this that the High Court has no jurisdiction at present to entertain applications under the said Act. Mr. Chatterji appearing for the Respondent debtors relied upon a 1987 edition of the book, Presidency Small Cause Courts Act and Rules along with the City Civil Court Act and Rules, written by Mr. Sukumar Guha and published by Duttaon Book Merchant. The said book contains a mistake in this that it reproduces at p. 7, Section 5(3)(ii) of the City Civil Court Act, 1953, giving the impression that the Presidency Towns Insolvency Act has come within the ambit of the City Civil Court jurisdiction and that the High Court has lost jurisdiction with regard thereto.

The above mistake is however somewhat excusable because the attempt to exclude such jurisdiction of the High Court was indeed made in the City Civil Court Amendment Bill, 1980, but the presidential assent was given, to the amendment bill with a reservation as to the said removal of the Insolvency Jurisdiction of the High Court.

Thereafter the State Legislature passed the City Civil Court (Amendment) Act, 1982, preserving the High Court''s jurisdiction.

These materials would be found at pp. 46 and 47 of 1983, Vol. I, Calcutta High Court Notes (Statutes).

The position therefore is that the High Court retains its jurisdiction. Thus the petition is allowed. The Respondents are adjudicated insolvents as prayed for.

The Official Assignee shall forthwith take possession of all the property, assets and effects of the three debtor Respondents being M/s. Ghosh Industries, Sri Tapas Kumar Ghosh and Sri Achintya Kumar Ghosh.

The Official Assignee and all others and parties concerned to act on a signed copy of the dictated order on the usual undertaking.