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Judgment
Ramesh, J.—Heard learned Counsel appearing for the parties.
This appeal by the creditor is directed against the order dated 31.8.2002 passed on an application filed in I.C.No. 27/2000 by the Official Receiver u/s 53 read with Section 4 and 5 of the Provincial Insolvency Act, 1920 (''the Act'' for short) for annulling of the two sale-deeds dated 19.12.1998 and 23.7.1999 executed in favour of respondent Nos. 4 and 5 respectively.
The order impugned reads thus:
"The receiver filed application on 14.6.2002 for annulment of sale-deeds after the applications filed by applicant-Laxminarasamma on 15.2.2002. The application dated 14.6.2002 not brought to the notice when arguing on application. So now, cannot be corrected the observations made in order."
The Court below has disposed of the application summarily. The impugned order is not tenable in law as it is not in conformity with Section 53 of the Act. It is not even a speaking order. It is relevant to notice Section 53 of the Act which reads as follows:
"53. Avoidance of Voluntary transfer - Any transfer of property not being a transfer made before and in consideration of marriage or made in favour of a purchaser or incumbrancer in good faith and for valuable consideration shall, if the transferor is adjudged insolvent on a petition presented within two years after the date of the transfer, be voidable as against the receiver and may be annulled by the Court."
Obviously, a proceeding u/s 53 of the Act is in the nature of a suit in the matter of pleadings, framing of issues, taking of evidence and the giving of judgment. It cannot be disposed of summarily.
The impugned order is liable to be set aside on the sole ground of not being a speaking order. Hence it is not necessary to refer to the other infirmities in the impugned proceeding.
In the result, I make the following order:
i) The impugned order is set aside.
ii) The matter is remitted to the Court below with a direction to dispose of the application afresh in accordance with law and after hearing the parties including Respondent Nos. 4 & 5 who are the purchasers under the sale-deeds in question.
The appeal is allowed in the above terms. No costs.