Indian Kanoon - Search engine for Indian Law

The Court of appeal has given a very extended application to Section 72 of the Act, But it appears to me that the legislature introduced, into that section the words which the Court may think it expedient or necessary to decide because they thought they could trust the Court of Bankruptcy not to exercise the jurisdiction unless it really was expedient to withdraw the case from the ordinary tribunals. It is not expedient to do that in the case of a mere money demand.

7. A more guarded expression of opinion than that contained in Ellis v. Silber [1872] 8 Ch. 83 is to be, found in Maule v. Davis in re Motion [1873] 9 Ch. 192, the judgment in which case was also delivered by Lord Selborne. The jurisdiction of Bankruptcy Courts to adjudicate on the right of third parties is now fully recognized (see the authorities in Williams on Bankruptcy, 12th Edition, pp. 377 to 378; and Robson on Bankruptcy 7th Edition, p. 36, etc.), though it has also been laid down that there is a discretion in the Bankruptcy Courts to direct the trustee to institute or defend in the ordinary civil Courts suits concerning the rights of third parties.