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Firm Govind Hanumanprasad Of Ujjain vs Shamsingh S/O Sardar Lakhansingh Of ... on 6 March, 1962

10. In the present case the Insolvency Court did not merely determine the question whether the certificates sought to be attached were in the possession or under the control of the insolvent at the time of their attachment. It has gone further and held that the transfer of the same in favour of the objector was good and for valid consideration and on that consideration it ordered the release of property from attachment. Although the Insolvency Court should not ordinarily inquire prior to the making of an order of adjudication whether the transfer made by the insolvent in favour of a third person is genuine or not as held in AIR 1935 Cal 558 Bibhuti Bhusan v. Birendra Nath, yet inasmuch as the court below has determined the validity of transfer in favour of the objector, though merely on the basis of certain documents produced before it and without affording opportunity to the parties to lead evidence, an appeal under Section 75(2) of the Provincial Insolvency Act is competent and resort to Section 75(3) is not necessary. But if any such thing were necessary I would feel no hesitation in granting such permission as the order in question suffers from serious infirmities as will be seen later.
Madhya Pradesh High Court Cites 9 - Cited by 0 - Full Document
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