Skip to content
How to use Judgment tools
  1. Click Tools to open PDF, Print, Tag, Note, Favourite, and CiteSignal.
  2. Use Brief & Ask in the toolbar for the AI Brief and case chat.
  3. Jump to sections with the pills below the help bar.

Krishnappa Chetti Vs. Adimula Mudali

Krishnappa Chetti vs Adimula Mudali

Type Court Judgment Court Chennai Decided Oct 16, 1896
~2 min read
https://sooperkanoon.com/case/778563

For advocates & juniors · 7-day free trial

Brief this judgment before chambers

Stop skimming 50 pages - get an 18-section AI Brief on this case, ask scoped follow-ups, and find related precedents with Semantic Search. Full trial, no card required.

  • 18-section brief - facts, issues, ratio, relief
  • Ask this case - answers cite the judgment
  • Semantic search - find precedents by meaning
  • Research drawer - sections, cites, related cases

No card required · credentials emailed · Log in if you already have an account

Citation
Court
Chennai
Judge
Decided On
Subject
Civil

Case Summary

AI-generated summary - not the official court judgment text.

Contract Act - Act IX of 1872, Section 23--Unlawful agreement--Promissory note given in fraud of insolvency law. -

Key legal issue
Civil

Parties & Advocates

Appellant / Petitioner

Krishnappa Chetti

Respondent

Adimula Mudali

Legal References

Cases Referred
Amthul Latheef Syed Onissa Begum Saheba v. Choonoolalji Sowcar O. S. Appeal No.
Reported In
(1897)ILR20Mad84

Excerpt

contract act - act ix of 1872, section 23--unlawful agreement--promissory note given in fraud of insolvency law. - 1. the circumstances under which the promissory note was given by the defendant are stated in the reference. the consideration was the withdrawal of threatened opposition to the discharge of the insolvent and the plaintiff's consent to the arrangement among the creditors. 2. by the promissory note the plaintiff secured for himself a larger payment than he was entitled to under the composition deed, and this was unknown to the other creditors.3. it is contended on plaintiff's behalf that the circumstance that the note was given by a third party and not by the insolvent rendered the transaction an innocent one as far as the law of insolvency is concerned.4. in our opinion it makes no difference whether the note is given by the insolvent or by a stranger if it is given with the insolvent's knowledge and as a part of an arrangement for securing to one creditor an advantage over the others. the ease is on all fours with knight v. hunt 5 bing. 432. the case cited amthul latheef syed onissa begum saheba v. choonoolalji sowcar o. s. appeal no. 16 of 1895 unreported is distinguishable, for there it was expressly found that there was no fraud.5. here the other creditors being ignorant of the arrangement must be taken to have been deceived.6. tiruvengadasami and subbayya, attorneys for plaintiff.

Full Judgment

1. The circumstances under which the promissory note was given by the defendant are stated in the reference. The consideration was the withdrawal of threatened opposition to the discharge of the insolvent and the plaintiff's consent to the arrangement among the creditors.

2. By the promissory note the plaintiff secured for himself a larger payment than he was entitled to under the composition deed, and this was unknown to the other creditors.

3. It is contended on plaintiff's behalf that the circumstance that the note was given by a third party and not by the insolvent rendered the transaction an innocent one as far as the law of Insolvency is concerned.

4. In our opinion it makes no difference whether the note is given by the insolvent or by a stranger if it is given with the insolvent's knowledge and as a part of an arrangement for securing to one creditor an advantage over the others. The ease is on all fours with Knight v. Hunt 5 Bing. 432. The case cited Amthul Latheef Syed Onissa Begum Saheba v. Choonoolalji Sowcar O. S. Appeal No. 16 of 1895 unreported is distinguishable, for there it was expressly found that there was no fraud.

5. Here the other creditors being ignorant of the arrangement must be taken to have been deceived.

6. Tiruvengadasami and Subbayya, Attorneys for Plaintiff.

Continue Your Research


AI Briefs · Semantic Search · Save & annotate judgments

Start your 7-day free trial