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Southern Steelmet And Alloys Ltd. vs B.M. Steel, Madras on 1 February, 1978

In view of the amended provision of Order 21, Rule 58, C.P.C. by virtue of the amended act 104 of 1976, which has been interpreted by a Division Bench of this Court in Southern Steelmet and Alloys v. B.N. Sttel MANU/TN/0220/1978 : AIR 1978 Mad 270, the view taken by the learned appellate Judge that the attaching creditor has to put forth his contentions in a separate suit and not in a claim proceeding, is not tenable and sustainable. Since the learned Appellate Judge had not approached the case in the light of the above well-established legal principles, but on the contrary, opposed to the same, and allowed the claim, it has become necessary for this Court to set aside the judgment and decree of the appellate Court, and remand the matter to the lower appellate Court for fresh disposal according to law. Since this Court is now remanding the matter, it is needless to express any opinion or give any finding on the question with regard to the nature of the transaction in favour of the claimant in view of the presumption under Section 6 of Act 15 of 1976. However, the substantial questions of law are answered accordingly in the light of the above legal principles.”
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