I N T H E H I G H C O U R T O F J U D I C A T U R E A T M A D R A S (I N I N S O L V E N C Y ) M O N D A Y , T H E 1 6 T H D A Y O F D E C E M B E R 2 0 1 6 T H E H O N ' B L E J U S T I C E C . V . K A R T H I K E Y A N I. P . N o . 5 0 of 2 0 1 5 In the matter of the Presidency Towns Insolvency Act III of 1909 and in the matter of P.Murali Krishnan and another ... Debtors J.B.Malhotra H.U.F., represented by its Manager and Kartha, J.B.Malhotra ... Petitioning Creditor V s
1. Mr.P.Murali Krishnan
2. Mrs.M.Jayalakshmi ... Debtors Insolvency Petition praying that this Hon'ble Court be pleased:-
(a) to treat this petition as urgent;
(b) to adjudicate the debtors as insolvents;
(c) to direct that the estate of the debtors be vested in the Official Assignee of Madras, for the benefit of the general body of creditor of the debtors.
(d) To order that the costs of this petition be paid by the Official Assignee of Madras, from and out of the estate of the Debtors to the Petitioning Creditor.
This Insolvency Petition coming on this day before this Court for hearing in the presence of Mr.T.Skandhakumaar, Advocate for the petitioning creditor herein and the debtors not appearing in persons or by advocate and upon reading the petition and affidavit filed herein and upon perusing the evidence adduced herein and the exhibits marked thereon.
T h e C o u r t m a d e th e foll o w i n g Or d e r : -
This insolvency petition filed under Sections 9, 10,11,12 and 13 of the Presidency Towns Insolvency Act, III of 1909 and under Order III-A of the Insolvency Rules, 1958 to treat this petition as urgent and to adjudicate the debtors as insolvents and to direct that the estate of the debtors be vested in the Official Assignee of Madras, for the benefit of the general body of creditor of the debtors.
2 . Though the respondents are served with notice, they have not come forward either to file a counter or to pay the debt or to oppose this petition. It is clear they are not interested in contesting the claim of the petitioner. They are set ex-parte.
3 . According to the petitioning creditor, the debtors herein owed money to the petitioning creditor on a suit in O.S.No.5182 of 2013 on the file of City Civil Court, Chennai, wherein the suit was decreed on 18.12.2014 in favour of the petitioning creditor. The debtors herein failed to pay the decree amount. The Debtors are liable to pay Rs.3,87,957.50 as on the date of filing of the petition, to the petitioning creditor. Hence, this petition.
4 . Though it is normal practice that the petitioning creditor should be asked to present himself before the Master and evidence recorded, it is seen from the records that the petitioning creditor has filed the certified copy of the decree and the Master has also recorded affidavit of service with respect to the Insolvency notice, in which, notices were returned undelivered. Thereafter, the Master had stated that service is completed. Again before this Court, the respondents had not appeared. Consequently, there is no hesitation in declaring the debtors as an insolvents.
5 . All the above aspects have been well stated by the petitioning creditor in the affidavit filed in support of the petition and were fortified by the documents filed.
C . V . K A R T H I K E Y A N , J.
V s g
6 . Thus, it is made clear that there is an existing debt, that there is notice, which has been served upon the debtors and for the pre-existing debt, the creditor have no other security. Hence, this petition deserves to be allowed and consequently, the debtors have to be adjudicated as insolvents.
7 . Accordingly, the debtors are adjudicated as insolvents. The Official Assignee is directed to take over the assets of the insolvents and administer the estate of the insolvents in a regular manner for the benefit of the creditor. The insolvents are granted 18 months time to apply for discharge.
1 6 . 1 2 . 2 0 1 6 vsg I. P . N o . 5 0 of 2 0 1 5 http://www.judis.nic.in