Chennai Court March 1930 Judgments

O.R.M.M.S.P.S.V. Sevugan Chettiar (Dead) and ors. Vs. M.A.K. Kasi Alia ...

Court: Chennai

Reported in: AIR1931Mad344; (1931)61MLJ173

Reilly, J.1. This is an appeal against an order of the District Judge of Ramnad approving of a composition scheme under Section 38 of the Provincial Insolvency Act. The insolvent in this case was adjudicated on the 31st August, 1923. In December, 1924, he submitted a draft scheme of composition, which was not approved. In September, 1926, he submitted a second scheme with three alternative proposals, the third being that the whole of his property should be assigned to any person who agreed to pay 6 annas in the rupee to all the creditors. The 17th creditor in the case, who is the husband of the insolvent's paternal aunt, offered to take over the insolvent's assets on those terms. The 6th creditor, who had obtained a decree against the insolvent for Rs. 51,000, objected to the proposed scheme; but the requisite majority of creditors in number and amount accepted the scheme. When the matter came before the District Judge, it appeared that claims amounting to Rs. 2,71,000 had been proved....