Personal money claims against an insolvent may proceed without leave where no relief is sought against the insolvent's property.

Section 28(2) of the Provincial Insolvency Act was construed as restricting only suits or other legal proceedings that seek relief against the insolvent's property, not a purely personal money claim in personam. On that basis, a creditor's second appeal on a bare debt claim did not require prior leave of the insolvency court, and the receiver was not a necessary party. Section 59(d) was read consistently with that view by confining the receiver's powers to proceedings relating to the insolvent's property. The decree obtained in such a personal action remained valid, and the decretal debt was provable in insolvency.

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Issues: Whether a second appeal by a creditor on a bare money claim against an insolvent, filed without leave of the insolvency court and without impleading the receiver, was barred by Section 28(2) of the Provincial Insolvency Act and whether the resulting decree could be proved in insolvency.

Analysis: Section 28(2) was construed as controlling proceedings relating to the property of the insolvent. The words "suit or other legal proceeding" were held not to extend to a purely personal money claim in personam, because such a claim does not itself seek relief against the insolvent property. The Court distinguished authorities dealing with execution, tenancy, and company proceedings, and relied on decisions holding that personal actions against an insolvent need not be continued against the receiver. Section 59(d) reinforced this construction by confining the receiver's power to proceedings relating to the property of the insolvent. On that footing, the appeal before the Patna High Court was not a proceeding requiring prior leave, and the receiver was not a necessary party.

Conclusion: The second appeal was not hit by Section 28(2), the decree was valid, and the decretal debt was provable in insolvency; the objection failed.

Ratio Decidendi: Section 28(2) of the Provincial Insolvency Act bars only suits or other legal proceedings against the property of the insolvent, not a purely personal money claim in personam, and such a proceeding does not require prior leave of the insolvency court or impleadment of the receiver.

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