Madras High Court
Judgment vs . on 26 April, 2021
IP.No.10 of 2020
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 26.04.2021
CORAM
THE HONOURABLE MR.JUSTICE R.SUBRAMANIAN
Insolvency Petition No.10 of 2020
K.Babu ... Petitioning Creditor
Vs.
V.Shanthi ...Debtor
PRAYER: Petition filed under Section 9 to 13 of the Presidency Towns
Insolvency act, III of 1909 and Order III-A of the Insolvency Rules, 1958
praying (a) to treat this Petition as urgent; (b) to adjudicate the Debtor as
Insolvent; (c) to direct that the estate of the Debtor be vested in the Official
Assignee of Madras, for the benefit of the general body of creditors of the
Debtor; (iv) to order that the costs of this petition be paid by the Official
Assignee of Madras, from and out of the estate of the Debtor to the
Petitioning Creditor.
For Petitioning Creditor : Mr.T.Srikanth
1/5
https://www.mhc.tn.gov.in/judis/
IP.No.10 of 2020
JUDGMENT
This insolvency petition has been filed seeking to adjudicate the
respondent as insolvent on the ground that the insolvent has suspended
payment of her debts due to inability to repay and she is liable to be
adjudicated as insolvent, since she has committed an act of insolvency
within the meaning of Section 9(1)(g) of the Presidency Towns Insolvency
Act.
2.Despite service of notice, the respondent has not appeared either
in-person or through counsel, duly instructed. The petitioner had let in
evidence as P.W.1. He has filed a proof affidavit affirming the averments
made in the petition. Exs.P1 to P3 have been marked. Ex.P1 is a
Promissory note executed by the respondent in favour of the petitioner as a
security for repayment of a sum of Rs.1,50,000/-, borrowed by her, with
interest at 18% per annum. Ex.P2 is the letter executed by the respondent /
debtor acknowledging the debt and expressing her inability to repay the
money borrowed by her. Ex.P3, original envelope, on which the Ex.P2 was
received.
https://www.mhc.tn.gov.in/judis/
IP.No.10 of 2020
3.Considering the evidence of the petitioner, I am of the opinion
that the debtor has in fact committed an act of insolvency within the
meaning of 9(1)(g) of the Presidency Town Insolvency Act.
4.Hence, there will be an order adjudicating the debtor as
insolvent. The Official Assignee shall take steps to realize the assets of
insolvent.
5.In fine, this Insolvency Petition is allowed. No costs.
26.04.2021
kkn
Index: No
Internet: Yes
Speaking Order
https://www.mhc.tn.gov.in/judis/
IP.No.10 of 2020
List of witness marked on the side of the plaintiff:-
P.W.1 – K.Babu
List of Exhibits marked on the side of the plaintiff:-
Ex.P1 – The original promissory note dated 16.05.2019 executed by the
Debtor in my favour.
Ex.P2 – The original letter dated 17.09.2020 from Debtor addressed to me
informing that she is not in a position to repay the money
borrowed by her from me.
Ex.P3 – The original envelope addressed to me by the Debtor (containing
Ex.P2) with original postal receipt dated 18.09.2020.
List of witness and documents marked on the side of the defendant:-
Nil
26.04.2021
https://www.mhc.tn.gov.in/judis/
IP.No.10 of 2020
R.SUBRAMANIAN, J.
KKN
Insolvency Petition No.10 of 2020
26.04.2021
https://www.mhc.tn.gov.in/judis/
