Patnayakuni Kodanram vs Kolati Dhanalakshmi on 24 December, 2020
Coming to the frame of the suit, para 4 of sub-section (1) lays
down that the suit should be brought on behalf of or for the benefit
of all the creditors. Para 4 has been added in 1929. Before the
addition of this para, there was conflict of opinion whether a suit to
set aside a transfer on the ground that it was made with intent to
defeat or delay creditors should be brought on behalf of all the
creditors or whether it was competent to any one creditor to institute
such a suit. The amendment gives statutory recognition to the
practice followed by the Calcutta and Bombay High Courts as being
"based on the wholesome principle that the transferee should not be
exposed to a multiplicity of suits at the instance, of various
creditors." (See: Ekkari Ghose v. Sidheswar Ghose8, Velama v R.
Shenoy9).