OFFICIAL RECEIVER, KANPUR AND ANOTHER versus ABDUL SHAKUR AND OTHERS

OFFICIAL RECEIVER, KANPUR AND ANOTHER versus ABDUL SHAKUR AND OTHERS

The High Court cannot interfere with District Court's findings of fact in a second appeal under s.75(1) Provincial Insolvency Act. There is no statutory presumption of consideration in insolvency proceedings under s.33 of the Act; the Insolvency Court must determine proof of real debt, not bound to the presumption under s.118 Negotiable Instruments Act.

Parties
Appellant: Official Receiver, Kanpur; Appellant: Kotwaleshwar Prasad; Respondent: Abdul Shakur; Respondent: Respondent No. 2; Respondent: Respondent No. 3
Jurisdiction
India
Judgment Date
11 September 1964
Procedural Posture
Civil Appeal / Appeal From Judgment and Decree Dated February 19, 1957 of Allahabad High Court in S.a.f. No. 4 of 1952
Outcome
appeal allowed
Legal Topics
Statutory Presumption, Schedule of Creditors, Proof of Debts, Jurisdiction of High Court

Case Brief

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Parties

Official Receiver, Kanpur

Appellant

Kotwaleshwar Prasad

Appellant

Abdul Shakur

Respondent

Respondent No. 2

Respondent

Respondent No. 3

Respondent

Procedural Posture

Civil Appeal / Appeal From Judgment and Decree Dated February 19, 1957 of Allahabad High Court in S.a.f. No. 4 of 1952

  1. 1 Whether the High Court had jurisdiction under s.75(1) of the Provincial Insolvency Act to interfere with District Court findings
  2. 2 Whether statutory presumption under s.118 of the Negotiable Instruments Act applies in insolvency proceedings under s.33 Provincial Insolvency Act
  3. 3 Whether the Receiver is bound to rely upon statutory presumption of consideration by promissory notes

Ratio Decidendi

The High Court cannot interfere with District Court's findings of fact in a second appeal under s.75(1) Provincial Insolvency Act. There is no statutory presumption of consideration in insolvency proceedings under s.33 of the Act; the Insolvency Court must determine proof of real debt, not bound to the presumption under s.118 Negotiable Instruments Act.

Court Disposition

appeal allowed

Orders

  • Order of Allahabad High Court set aside
  • Order of District Court restored