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Judgment
K.S. Paripoornan, J.—The first respondent in I. P. No. 2 of 1990 - a company - is the petitioner herein. In this revision, the order passed by the Court below dated 23-1-1992 is awaited. The petitioner in I. P. No. 2/90 is the first respondent in this revision. When I. P. No. 2/90, filed u/s 7 of the Indian Insolvency Act, to declare the petitioner as insolvent, came up for orders, the revision-petitioner (company) came to have taken up a place that the petition is not maintainable as u/s 8 of the Act. the petition is barred. The court below held that section 8 of the Act. will apply only if the 1st respondent is to be declared insolvent. The petitioner in I. P. No. 2/90 who is a debtor to respondents, seek to declare himself insolvent and so the petition is maintainable. The creditor-1st respondent in the court below - has come up in revision. I heard counsel. Section 7 and 8 of the Insolvency Act are as follows :
Petition and adjudication:- Subject to the conditions specified in this Act, if a debtor commits an act of insolvency, an insolvency petition may be presented either by a creditor or by the debtor, and the Court may on such petition make an order (hereinafter called an order of adjudication) adjudging him an insolvency.
Explanation:- The presentation of a petition by the debtor shall be deemed an act of insolvency within the meaning of this section, and on such petition the Court may make an order of adjudication.
Exemption of corporation, etc., from insolvency proceedings :- No insolvency petition shall be presented against any corporation or against any association or company registered under any enactment for the time being in force.
A petition can be filed u/s 7 of the Act, either by a creditor or by a debtor. A company, which is a creditor can file, a petition against another person who is a debtor. There is no bar. If the plea of the revision - petitioner is accepted, a company cannot file a petition against any person who is a debtor to declare him as insolvent. A combined reading of sections 7 and 8 of the Act would go to show that what is interdicted is a petition to declare any corporation or any association or company as an insolvent.
The court below was Justified in holding that the petition filed before it is maintainable. The fact that the first respondent is a company is not a bar for the maintainability of the petition. There is no error of taw or error of jurisdiction in the order of the court below. The revision is without merit. It is dismissed. There shall be no order as to costs.