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Judgment
This is an appeal against an order of the District Judge confirming an order of the Official Receiver requiring a succession certificate from the
appellant before payment of her claim. u/s 64 of the Provincial Insolvency Act a creditor entered in the schedule is entitled to be paid his dividend
out of the assets of the insolvent, and Section 4 of the Succession Certificate Act does not appear to be applicable to such payments because it is
only applicable to decrees or orders for the payment of debts. In the CPC of 1882, the framing of the schedule u/s 352 was deemed to be a
decree in favour of the creditors as held in Arunachala v. Ayyavu ILR (1884) M 318, but in the Insolvency Act of 1907 and the later Act of 1920
there is no such provision. Consequently, it would appear that Section 4 of the Succession Certificate Act is not applicable to the payment of
dividends by the Receiver. This is only natural, for in paying out the debts due by the insolvent the Receiver has always to investigate the claims and
adjudicate upon them. The claim has been proved and no other person has come forward to claim the same debt. The adjudication of the Receiver
is sufficient protection to the estate of the insolvent, for no further creditor can come"" in to prove against the insolvent''s estate. We must therefore
set aside the order of the Official Receiver and allow this appeal with costs.
The Official Receiver will pay the dividend to the appellant and also interest at 6 per cent for the period it has been withheld.