Vikram A.Jain … vs T.Karthikeyan …
2025 Latest Caselaw 4903 Mad

Citation : 2025 Latest Caselaw 4903 Mad
Judgement Date : 16 June, 2025

Madras High Court

Vikram A.Jain … vs T.Karthikeyan … on 16 June, 2025

Author: Abdul Quddhose

Bench: Abdul Quddhose

                                                                                         Insolvency Petition No. 1 of 2025

                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                       DATED: 16.06.2025

                                                               CORAM

                             THE HONOURABLE Mr. JUSTICE ABDUL QUDDHOSE

                                               Insolvency Petition No. 1 of 2025

                     Vikram A.Jain                                                           … Petitioner/Creditor

                                                                    Vs.

                     T.Karthikeyan                                                      … Respondent/Debtor

                     PRAYER: Insolvency Petition filed under Sections 9, 10, 11, 12 and 13
                     of the Presidency Towns Insolvency Act III of 1909 and Order III-A of
                     the Insolvency Rules, praying to adjudicate the Debtor as Insolvent and
                     to direct that the Estate of the Debtor be vested of the General body of
                     creditors of the Debtor and to order that the costs of this petition paid by
                     the Official Assignee of Madras from and out of estate of the Debtor to
                     the Petitioning Creditor.
                                      For Petitioner     : Mr. T.Srikanth

                                      For Respondent : Set exparte


                                                              ORDER

This petition has been filed under the provisions of the Presidency

Towns Insolvency Act seeking to adjudicate the Debtor as Insolvent and

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for a direction to the Official Assignee to administer the estate of the

Debtor.

2. The petitioner is having the benefit of the three judgment and

decrees in his favour against the Debtor and the said judgments are

passed by the XIX Additional Judge, City Civil Court, Chennai on

22.12.2022 in O.S. Nos. 5983 of 2015, 5984 of 2015 and 5985 of 2015

respectively. Since the money directed by the XIX Additional, City Civil

Court, Chennai under the aforementioned three decrees were not paid by

the Debtor, the Petitioning Creditor has instituted this insolvency

proceedings to adjudicate the respondent /Debtor as an insolvent.

3. The insolvency notice was issued by this Court to the

respondent /Debtor in I.N. No. 1 of 2024 on 13.02.2024. The said

insolvency notice issued as per the provisions of the Presidency Towns

Insolvency Act was returned as unserved. Thereafter, this Court had

directed the Petitioning Creditor to effect publication in Tamil daily

'Malai Murasu'. Pursuant to the said direction, the Petitioning Creditor

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has also effected paper publication in Tamil daily, 'Malai Murasu' on

17.09.2024.

4. The Petitioning Creditor has also let in oral and documentary

evidence before the learned Master of this Court pursuant to the direction

issued by this Court. The Petitioning Creditor, Mr.Vikram A.Jain was

himself examined as witness(PW1) and through PW1, the following

documents were marked as exhibits before the learned Master.

                      Sl. No.                      Nature of Documents                                    Exhibits
                      1.           Certified Copy of the decree dated 22.12.2022 in O.S.                   Ex.P1

No. 5983 of 2015 passed by the XIX Additional, City Civil Court, Chennai.

2. Certified Copy of the decree dated 22.12.2022 in O.S. Ex.P2 No. 5984 of 2015 passed by the XIX Additional, City Civil Court, Chennai.

3. Certified Copy of the decree dated 22.12.2022 in O.S. Ex.P3 No. 5985 of 2015 passed by the XIX Additional, City Civil Court, Chennai.

4. The insolvency notice dated 13.02.2024 n I.N. No. 1 Ex.P4 of 2024

5. The returned cover along with Affidavit of service Ex.P5

6. The copy of the paper publication effected in one Ex.P6 Tamil daily of Malai Murasu dated 17.09.2024

5. This Court after giving due consideration to the pleadings made

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by the Petitioning Creditor in the petition as well as the documents,

which have been marked as Exs.P1 to P6, is of the considered view that

the Debtor has committed an act of insolvency for the following

reasons:-

(a) despite the judgment and decrees having attained finality, the

respondent /Debtor has not come forward to settle the dues of

the Petitioning Creditor;

(b) the insolvency notice dated 13.02.2024 issued by this Court in

I.N.No. 1 of 2024, which has been marked as Ex.P4, has also

not been responded to by the respondent /Debtor. The said

insolvency notice sent to the address of the respondent /Debtor

has also been returned and the returned cover has also been

marked as Ex.P5;

(c) the paper publication was also effected by the Petitioning

Creditor pursuant to the direction issued by this Court in

Tamily Daily 'Malai Murasu' dated 17.09.2024, which has

been marked as Ex.P6. A long rope has been given to the

respondent /Debtor to settle the dues of the Petitioning

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Creditor.

6. A categorical averment has been made in the petition that the

respondent /Debtor is indebted to various creditors and he is not in a

position to pay the dues of the Petitioning Creditor. The decrees passed

in favour of the Petitioning Creditor, which have been marked as

exhibits, have also attained finality. The issuance of the insolvency

notice to the respondent /Debtor which have not been responded to by

the respondent /Debtor also proves that the respondent /Debtor does not

have any means to pay the dues of the Petitioning Creditor.

7. The petitioner therefore satisfies the statutory requirements as

required under the provisions of the Presidency Towns Insolvency Act

for the purpose of declaring the respondent /Debtor as an insolvent by

this Court. Therefore, the prayer sought for in this petition has to be