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Judgment
We do not agree with the learned District Judge that a transfer by a Court sale in execution is entirely outside the scope of Section 53,
Provincial Insolvency Act. It is possible that, as alleged in this case, such a sale may be collusive and in execution of a collusive decree. In
Thiruvengada Mudaliar, In Re: Income Tax assessment of P. Thiruvengada Mudaliar, , it was held that a charge made by a decree in pursuance of
collusive arbitration proceeding''s was within the section. In Puran Nath v. Atwargir [1915] 29 I.C. 217, a Bench of the Allahabad High Court
held that for debtor to put immovable property out of the reach of his creditors by bringing a collusive suit against a third party as if for recovery of
possession and then to compromise it so as to leave that party in possession would be a transfer within Section 4 (b) (now Section 6 (b),
Provincial Insolvency Act, and if so, it would clearly be liable to attack u/s 53.
Nor has the learned District Judge considered the applicability of Section 4 of the Act, under which also the Official Receiver''s petition was
preferred. This appeal is allowed, and the order of the District Judge is set aside. The petition is remanded to him for fresh disposal after further
inquiry. The costs of this appeal will abide and follow the result.