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T. Chandrasekharaiah vs D. Sreeramulu Chetty And Ors. on 26 October, 2004

"The expression "prima facie grounds" would indicate that if on the records of the proceedings it appears to the Court that there are properties in possession of the debtor, which would disprove his claim that he is unable to pay his debt, in that case alone, his application shall be dismissed. If, however, there is no such clear evidence on the record, the debtor must be adjudged an insolvent in terms of Section 24 (1)(a)".
Andhra HC (Pre-Telangana) Cites 13 - Cited by 0 - L N Reddy - Full Document

Namdeo Vishwanath vs Umbaosingh Sadhuram on 2 February, 1968

In a judgment of the Patna High Court in Satdeo Narain v. Union of India [1964] A.I.R. Pat. 52 it has been pointed out that the mere allegation that the debtor sold properties and purchased others benami in the name of other persons is not enough to refuse adjudication. A view has also been taken that the expression "prima facie" used in the proviso to Section 24 would mean that the property of the debtor available for satisfying the debts must become apparent on the record. It may also be accepted as a correct proposition of law that simply because the debtor comes before the Court and makes the statement, the Court is not bound to believe him. However, before the word of the debtor is rejected, there must appear circumstances on the record from which the allegations made by the debtor deserve to be rejected.
Bombay High Court Cites 13 - Cited by 2 - Full Document
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